Owners of homes that sit vacant for more than six months in a year will be ordered to cough up extra tax, the Victorian Government has announced.
From January 1, homeowners across the state will be liable for 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 the inner and middle suburbs of Melbourne, with the state government identifying hundreds of apartments that have been left vacant through a recent investigation.
Authorities in Victoria recently targeted five apartment buildings in Melbourne and found 177 properties that were liable for the tax.
The investigation will now expand to 13 more apartment towers across the city, as well as houses in the inner and middle suburbs of Melbourne.
The tax was introduced to help ease the housing crisis by encouraging home owners to rent their properties for at least six months of the year to avoid receiving a VRLT assessment.
The longer a home sits empty, the more the tax rate increases, based on the number of consecutive years the property sits vacant.
Victorian Treasurer Tim Pallas said the government knows Victoria needs more homes, and by cracking down on vacant properties they were easing the housing pressure being felt across the state.
“Expanding vacant residential land tax will free up empty houses for rent and sale, boosting supply and making homes more affordable,” he said.
But shadow treasurer Brad Roswell disagreed, saying after 10 years of Labor budgets, life was getting harder for Victorians and housing was becoming more unavailable and unaffordable.
“Since Labor were elected, they have introduced or increased 55 taxes, including around 30 taxes on land and property,” he said.
“What Labor can’t seem to understand is that when they tax things, they get more expensive and ultimately it’s vulnerable Victorians that are hit the hardest.
“A tax system that incentivises properties to be on the long term rental market, rather than continuing to punish rental providers with higher taxes, is something that Labor should consider as a matter of urgency.”
Authorities in Victoria recently targeted five apartment buildings in Melbourne and found 177 properties that were liable for the tax.
The investigation will now expand to 13 more apartment towers across the city, as well as houses in the inner and middle suburbs of Melbourne.