The block’s billionaire Adrian Portelli now faces a huge tax bill after snapping up the five properties at the show’s auction on Sunday.
The billionaire, 35, spent a total of $15.03 million buying all the luxury homes on Phillip Island from the show’s 2024 season for the first time on the show.
In the wake of the huge purchases, its tax obligations to the Victorian government have been revealed, with hefty stamp duties and annual land taxes on the horizon.
The block’s top bidder faces staggering costs exceeding $1.2 million after its multi-billion dollar purchases.
From stamp duty alone, the Victorian State Revenue Office could raise up to $876,950, according to wellbeing.com.au.
On top of that, Portelli would also be shelling out approximately $332,182 annually in property taxes.
Alan Mitchell, managing director of Mitchell Partners, emphasized the toll taxes are taking on real estate investors.
He noted that many of his clients are choosing to sell their Victorian assets and reinvest in Queensland property or even the stock market due to high taxes.
Block billionaire Adrián Portelli now faces a huge tax bill that exceeds $1.2 million. (Portelli is pictured with winners Maddy and Charlotte Harry)
After acquiring all five homes for the show’s 2024 season during Sunday’s grand final auction, Portelli’s tax obligations to the Victorian government were revealed, with hefty stamp duty and annual land taxes on the horizon.
“Even if the government removes these taxes, property is a long-term investment,” Mitchell told Realestate.com.au.
‘If investors decide to buy in Queensland, they are not likely to sell in Queensland just to take advantage of reduced rates in Victoria.
“It’s like turning the Titanic upside down: even if they cut rates, it could take five to 10 years to offset the effects of recent fiscal policies.”
He added that the state government’s reliance on taxing investors could prove counterproductive in the long term, describing land tax revenue as a “short-term gain.”
He noted that as more investors leave Victoria’s property market, the government could see a drop in revenue in the coming years.
It comes after Libertarian MP David Limbrick shared a video last week suggesting that the “real winner of The Block” would ultimately be the State Bureau of Revenue.
He highlighted how rising transaction costs were driving investors away, with many opting to put their funds into the stock market, where there is no stamp duty.
Victoria’s State Revenue Office could get up to $876,950 in stamp duty alone, according to realestate.com.au
Portelli revealed his crash plan for ‘Block Island’ after purchasing the homes of the five contestants during the auction day.
He revealed that he will be giving away all the houses in a massive ‘resort giveaway’ through his LMCT+ raffle business.
‘Under new management! And as mayor of the city of Portelli, I would like to announce a world first. WE’RE GIVING AWAY A FKN RESORT!’ confirmed on Facebook.
‘1 drawing – 1 prize – Winner takes the entire resort OR $8,000,000 in instant tax-free cash! Let the game begin.
Accompanying the announcement was a photo of Portelli posing next to one of his luxury cars while posing inside the Block complex, which he had just purchased.
He was all smiles as he relaxed against his vehicle while holding an LMCT+ sign that read “No Vacancies.”
The ‘rewards club’ that Portelli has made billions from sees his customers pay for different levels of membership to receive a series of entries into luxury gifts.
Portelli has been buying block houses for three seasons and giving them away in his raffles.
It comes after Portelli revealed his crash plan for ‘Block Island’ after purchasing the five contestants’ homes during auction day. Pictured: Facebook post from Portelli’s business.
Despite keeping the five properties, Portelli confessed on Monday to The Kyle and Jackie O Show that he doesn’t even like Phillip Island and that’s why he’s giving away all the houses in the raffle.
“I was thinking about opening my own resort, but I’m actually going to give it to one of my clients,” Adrián responded.
Presenter Kyle Sandilands explained: ‘That’s what he does. Every time he buys these houses he gives them to one of his clients… It’s part of a contest (LMCT+).’
“We give them away and someone takes it,” Adrian said, before criticizing the location where The Block was filmed this year.
“I’m not a big fan of Phillip Island. It’s a little complicated for me. “I can’t be bothered to drive to that point,” he said.
Portelli also revealed the auction was rigged after Maddy and Charlotte Harry became the youngest winners in history on Sunday.
Portelli also revealed the auction was rigged after Maddy and Charlotte Harry (both pictured) became the youngest winners in history on Sunday.
‘We carefully selected the order of the auction to make sure the girls (Maddy and Charlotte Harry) were last. That way we can get them to win,” Portelli told Nova’s Jase & Lauren.
Portelli revealed that it was decided that her house would be the last to go up for auction to increase the drama after the newcomers were criticized by their co-stars.
‘The girls cared. They arrived late. “They were the underdogs, they were made fun of and harassed,” he said.
He said Marry and Charlotte were informed in advance why their property would be auctioned last, adding that the other contestants were kept in the dark.
‘It was just the girls (who were in the plan). How good is that? “They are the sweetest and most innocent and they were the ones who played the best,” he shared.