The new melbourne land tax  will affect investment properties and holiday homes that remain vacant for six months or more each year. It’s been designed to help free up vacant housing for people working in Victoria, and has a ten year timeline. Great Ocean Road Real Estate director Ian Stewart says the state government’s changes could also encourage holiday home owners to become landlords for permanent rentals, which would increase the number of rental homes in the area.

Under the Vacant Residential Land Tax, which was introduced in 2021 as part of coronavirus relief measures and will re-start in 2022, homeowners in inner and middle Melbourne need to notify the State Revenue Office if their property is unoccupied for more than six months during the previous calendar year. This must be done by 15 January each year. The SRO will then issue an assessment notice early in the year that includes a land tax assessment, and confirmation that an exemption has been processed or a request for further information if applicable.

Decoding Melbourne Land Tax: Obligations, Exemptions, and Calculations

SRO’s website has a range of resources to assist with the vacancy residential land tax, including FAQs and fact sheets. It also has a contact form for further information.

SRO’s chief executive, Paul Pallas, says the argument that the new vacant residential land tax would be passed onto renters is flawed. “The reality is, if you’re wealthy enough to own a property you can easily afford to keep it occupied,” he said. “It’s only a very small portion of the overall market that can’t.”