Australia: Details of proposed tax amendments, including vacant residential land tax changes (Victoria)

The State Revenue Office Victoria released further details of proposed amendments in the bill

The State Revenue Office Victoria released further details of proposed amendments in bill

Following the introduction of the State Taxation Acts and Other Acts Amendment Bill 2023 to the Parliament of Victoria, the State Revenue Office Victoria released further details of the proposed amendments in the bill, which include:

  • Expanding vacant residential land tax to all vacant residential land in Victoria from the 2025 tax year, subject to applicable exemptions
  • Expanding the definition of vacant residential land to include unimproved residential land that has been unimproved for five years or more in established areas of metropolitan Melbourne from the 2026 tax year
  • Prohibiting land tax apportionment between a vendor and purchaser under a contract of sale of land from January 2024
  • Prohibiting windfall gains tax from being passed onto a purchaser under a contract or option agreement entered into once a windfall gains tax liability has been assessed from January 2024
  • Changing the frequency of some reporting requirements, including foreign purchaser additional duty exemption reporting and absentee owner surcharge exemption reporting (from six months to 12 months)

The measures in the bill are subject to approval by the Victorian Parliament.

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.