Owners of homes that remain unoccupied for more than six months a year will have to pay additional tax, the Victorian government has announced.
Starting January 1, homeowners across the state will be responsible for the vacant residential land tax (VRLT) if properties are vacant for more than six months in the calendar year.
The tax currently only applies to homes in Melbourne’s inner and mid-suburbs, and the state government identified hundreds of apartments left empty through a recent investigation.
Victorian authorities recently raided five apartment buildings in Melbourne and found 177 properties that were subject to the tax.
The investigation will now expand to 13 more apartment towers across the city, as well as homes in Melbourne’s inner and mid-suburbs.
A recent investigation of five buildings in Melbourne found more than 170 unoccupied apartments that were subject to the vacant residential land tax.
The tax was introduced to help alleviate the housing crisis by encouraging landlords to rent out their properties for at least six months a year to avoid receiving a VRLT assessment.
The longer a home remains vacant, the more the tax rate increases, depending on the number of consecutive years the property remains vacant.
Victoria Treasurer Tim Pallas said the government knows Victoria needs more housing and by cracking down on vacant properties they were easing the housing pressure being felt across the state.
“Extending the vacant residential land tax will free up empty homes for rent and sale, increasing supply and making housing more affordable,” he said.
But shadow treasurer Brad Roswell disagreed, saying that after 10 years of Labor budgets, life was becoming harder for Victorians and housing was becoming increasingly unaffordable and unaffordable.
Victoria Treasurer Tim Pallas said the government knows Victoria needs more housing and by cracking down on vacant properties they were easing the housing pressure being felt across the state.
“Since Labor was elected they have introduced or increased 55 taxes, including around 30 land and property taxes,” he said.
“What Labor doesn’t seem to understand is that when they tax things, they become more expensive and ultimately it’s vulnerable Victorians who are hardest hit.
“A tax system that incentivizes properties to be in the long-term rental market, rather than continuing to punish rental providers with higher taxes, is something the Labor Party should urgently consider.”
Victorian authorities recently raided five apartment buildings in Melbourne and found 177 properties that were subject to the tax.
The investigation will now expand to 13 more apartment towers across the city, as well as homes in Melbourne’s inner and mid-suburbs.
Victoria’s shadow treasurer Brad Roswell said: “What Labor doesn’t seem to understand is that when they tax things, they become more expensive and ultimately it’s vulnerable Victorians who are hardest hit.”
Victorian Community Housing Industry Association chief executive Sarah Toohey said during the worst housing crisis Victorians have experienced in their lifetimes, we should not be in a situation where properties are empty.
“Housing stress and homelessness are through the roof – right now, more than 146,000 Victorian households are in need of social and affordable housing,” he said.
“We need to do everything we can, such as tax vacant properties and increase funding to build more community housing to ensure all Victorians can have a roof over their heads.”
