Treasurer Tim Pallas announced the Vacant Residential Land Tax at a property industry function on Tuesday, which will see owners of homes left unoccupied for more than six months taxed in an attempt to ease housing pressures.
However, Andrew Spalding, a tax partner at Mills Oakley, warned an exemption would not apply to those with two or more holiday homes, or homes held in family discretionary trusts. Mr Spalding said holiday home owners will need to consider distributing their holiday homes out of their trusts to themselves. However, he said it would trigger a capital-gains tax liability.Mr Pallas’ announcement was met with surprise on Tuesday, with media reports suggesting newly appointed premier Jacinta Allan was unaware of the new tax.
Real Estate Institute of Victoria CEO Quentin Kilian also said he was “disgusted” they had not been engaged about the tax. Victorian Farmers Federation president Emma Germano told 3AW’s Neil Mitchell her members are “getting very, very nervous”.