Victorian Vacant Residential Property Tax
From 1 January 2018 any residential properties that are left vacant for more than six month in inner city and middle areas of Melbourne will incur the new Victorian Vacant Residential Tax.
The Victoria government has announced the tax will be 1% of the capital improved value of vacant property. The Capital Improved Value (CIV) is the expected sum of money that might be realised if the land and any existing dwelling or improvements were offered for sale at a particular time.
The Victorian government are first movers on this state based legislation, with all State & Territory governments across Australia watching closely and considering a similar tax in their own juristiction should this piece of legislation prove effective.
Should you wish to learn more about this impending tax please contact your GMD team member.