Increase in absentee owner surcharge from the 2024 land tax year

The State Revenue Office (SRO) has announced an increase in the absentee owner surcharge for the 2024 land tax year. From 2024 onwards, an absentee owner surcharge of 4% will apply to Victorian land (both residential and commercial) owned by absentee owners. This surcharge was previously 2% for the 2020 to 2023 land tax years.

Definition of an Absentee Owner

An absentee owner includes:

1. Absentee Individuals

   • Any individual who is not an Australian citizen or permanent resident,

   • Does not ordinarily reside in Australia, and

   • Either:

     • Was absent from Australia on 31 December of the year prior to the tax year, or

     • Was absent from Australia for more than 6 months in total in the calendar year prior to the tax year.

2. Absentee Corporations

   • Corporations incorporated outside Australia, or

   • Corporations in which an absentee individual has a controlling interest.

3. Absentee Trusts

   • Trusts where at least one beneficiary is an absentee individual.

Obligation to Notify SRO

If you qualify as an absentee owner on 31 December, you must notify the SRO of your absentee owner status by 15 January of the following year.

Failure to notify the SRO may result in penalty tax on the surcharge amount of land tax.

Action Required

If you believe you meet the definition of an absentee owner, we recommend that you:

• Review your status promptly,

• Notify the SRO before the due date, and

• Consult a professional tax advisor to ensure compliance with these requirements.

If you require further information or assistance with procedure, please feel free to contact our office.