# Land Tax in Victoria Australia



## omtatsat (Feb 12, 2021)

For non resident Australians ( absentee owner ) its a crazy high tax. For what reason?






Calculators | State Revenue Office Victoria







www.e-business.sro.vic.gov.au


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## Moulard (Feb 3, 2017)

Gotta fund public services somehow...

But seriously, I suspect the absentee owner surcharge was introduced as an attempt placate the voting public who feel they are being priced out of purchasing a property. Absentee owners were an easy target.


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## omtatsat (Feb 12, 2021)

Moulard said:


> Gotta fund public services somehow...
> 
> But seriously, I suspect the absentee owner surcharge was introduced as an attempt placate the voting public who feel they are being priced out of purchasing a property. Absentee owners were an easy target.


I can understand that, if its applied to non Australians. But I am a citizen of Australia. Born and bred there. I was thinking of taking the Govt to court over this and I would if the finances would allow. But they dont. Unless crowdfunding? These super rich non Australian investors only are interested in grabbing a piece of Australia and this tax is nothing for them. But if one has to live from the return from such a property its another matter.


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## Moulard (Feb 3, 2017)

If you are an Australian citizen or Permanent Resident, and you own the property in your own name then I don't think you are classed as an absentee owner..

Take a look here and the four steps to determine if a person is an absentee individual. You would answer yes at step 1.






Absentee individuals | State Revenue Office


If you are an absentee owner, an absentee owner surcharge applies to taxable Victorian land you own. The surcharge is an additional amount that applies over the land tax you pay at general and trust surcharge rates. This surcharge is 2% from the 2020 land tax year (previously 1.5% from 1...




www.sro.vic.gov.au





Different requirements if the property is owned by a corporation or a trust ..


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## omtatsat (Feb 12, 2021)

Moulard said:


> If you are an Australian citizen or Permanent Resident, and you own the property in your own name then I don't think you are classed as an absentee owner..
> 
> Take a look here and the four steps to determine if a person is an absentee individual. You would answer yes at step 1.
> 
> ...


The thing is I am not a permanent resident as I dont live in Australia ( any more ). And being an Australian citizen ( meaning I was born in Australia ) does not change anything. More correct to say that for tax purposes in Australia I am not considered to be an Australian resident. Crazy!


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## omtatsat (Feb 12, 2021)

omtatsat said:


> The thing is I am not a permanent resident as I dont live in Australia ( any more ). And being an Australian citizen ( meaning I was born in Australia ) does not change anything.





omtatsat said:


> The thing is I am not a permanent resident as I dont live in Australia ( any more ). And being an Australian citizen ( meaning I was born in Australia ) does not change anything. More correct to say that for tax purposes in Australia I am not considered to be an Australian resident. Crazy!


"Generally, we consider you to be an *Australian resident for tax purposes* if you: have always lived in *Australia* or you have come to *Australia* and live here permanently. have been in *Australia* continuously for six months or more, and for most of that time you worked in the one job and lived at the same place. "


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## Moulard (Feb 3, 2017)

Perhaps read a bit more carefully....



> *Step 1*: Is the individual an Australian citizen or permanent resident?
> If yes, the individual is not an absentee person. If no, go to step 2.


As you are an Australian citizen you you answer YES to that question.

Thus you are not an absentee individual. 

There is no need to proceed to Step 2.

But if you don't trust the contents of the SRO website, I suggest you contact the SRO (unless you want to pay extra that is )






Contact us | State Revenue Office


By phone




www.sro.vic.gov.au


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## omtatsat (Feb 12, 2021)

Moulard said:


> Perhaps read a bit more carefully....
> 
> 
> 
> ...


Its almost like a trick question the first question. Its two questions in one. And I can answer yes and no and still not be correct. There should be two separate questions

1. Are you an Australian citizen?

and 2. Are you a Permanent Resident?

I have contacted a Lawyer to get more info.


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## Moulard (Feb 3, 2017)

Maybe I have spent way too long dealing with logic problems .. I read it as...

If 
(A = Yes) OR ( B = Yes)
then You != absentee owner...

Else...
Question 2....

I will admit that I have not actually read the legislation behind this...

I would have thought a quick question to the SRO would have been quicker and cheaper... unless you have a lawyer on tap.


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## omtatsat (Feb 12, 2021)

Moulard said:


> Maybe I have spent way too long dealing with logic problems .. I read it as...
> 
> If
> (A = Yes) OR ( B = Yes)
> ...


"Any individual who does not ordinarily live in Australia is likely to be considered an absentee by the Office of State Revenue, even if they are an Australian citizen."






Absentee land tax surcharge takes effect







www.propertycouncil.com.au


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## Moulard (Feb 3, 2017)

1. The Property Council of Australia is not the SRO Victoria..
2. The article in question is Referencing Queensland not Victoria ... it says so in the first sentence
3. Different State ... different rules .. two organisations called SRO.



If you want a definitive answer one way or the other all roads lead to the SRO Victoria.

Main phone number (+61) 3 9628 0000
Land tax dept fax number - 03 9628 6856

Postal address

State Revenue Office
GPO Box 1641
Melbourne VIC 3001

Document Exchange service address
State Revenue Office
DX 260090
Melbourne

They even have an enquiry form on their website





Contact Us | State Revenue Office Victoria







www.e-business.sro.vic.gov.au


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## Boddis (Dec 28, 2020)

> > If you are an Australian citizen or Permanent Resident, and you own the property in your own name then I don't think you are classed as an absentee owner..
> >
> > Take a look here and the four steps to determine if a person is an absentee individual. You would answer yes at step 1.
> >
> ...






how does this affect taxes? What is the difference with the USA?


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