Extra land tax may apply if you are an absentee owner.
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On this page
- Key information
- Absentee owner definition
- When the absentee owner surcharge applies
- Exemptions
- Notification requirements
Key information
If you own property in Victoria, you may have to pay land tax.
The absentee owner surcharge is an additional amount that may apply to people who own property in Victoria but who live outside Australia (depending on a landholder’s visa status).
The absentee owner surcharge rates are:
- 4% from the 2024 land tax year
- 2% from 2020 to 2023.
The surcharge is applied on top of the general land tax and trust surcharge rates.
You must tell us if you are an absentee owner or penalties may apply.
Absentee owner definition
If you are unsure whether you are an absentee owner, use this tool to check: Do I have to pay the absentee owner surcharge?
An absentee owner means an absentee person who owns land in Victoria. An absentee person means one of the following:
- a natural person absentee (absentee individual)
- an absentee corporation
- a trustee of an absentee trust.
Each of these terms has a specific meaning. You should refer to each term for more information to see if the absentee owner surcharge applies to you.
The absentee owner surcharge does not apply to:
- Australian citizens and permanent residents who live overseas
- New Zealand citizens who hold a special category visa (subclass 444).
When the absentee owner surcharge applies
If you are an absentee owner at 31 December, the surcharge applies in the following land tax year.
It is calculated on the total taxable value of Victorian land you own and is included in your land tax assessment. The way it is calculated depends on who owns the land and how they own it. For example, it may change if:
- the land is jointly owned
- an absentee corporation owns the land and is part of a land tax group
- a trustee of an absentee trust owns the land through a discretionary trust, unit trust or fixed trust.
You don’t pay the absentee owner surcharge if:
- your land is exempt from land tax
- the total taxable value of your land(s) is below $50,000
- your land is held on trust and is below $25,000, and the trust surcharge rate applies.
For the 2024 assessment year onwards, the absentee owner surcharge rate is 4%. It is applied on top of the general land tax and trust surcharge rates. Check the current rates table for full details.
Notification requirements
If you are an absentee owner on 31 December, you must tell us by 15 January of the following year using the online portal.
If you don’t notify us on time, you may have to pay penalty tax.
You must also update your status if your circumstances change. This includes changes to your:
- residency
- company’s structure
- trust arrangements.
Tell us you are an absentee owner
If you cannot access the absentee owner notification portal, please contact us.
Exemptions
Absentee corporations and trusts may not have to pay the surcharge in some circumstances. But exemptions are not intended for passive investors or landlords.
Absentee corporations
An absentee person who holds a controlling interest in an absentee corporation may be eligible for an exemption.
If granted, the absentee person is treated as not holding that controlling interest, and the corporation is no longer considered to be an absentee owner.
The exemption only applies if the corporation:
- is incorporated in Australia
- owns land in its own right
- runs a commercial operation in Victoria that uses local labour, materials and services.
It does not apply to an absentee corporation that is incorporated outside Australia.
Absentee trusts
An absentee beneficiary in relation to an absentee trust may be eligible for an exemption.
If all absentee beneficiaries are exempt, the trust is not considered to be an absentee trust and not subject to the surcharge.
Build-to-rent developments
Some build-to-rent developments may qualify for an exemption. The exemption ends once the development is complete and the owner becomes a passive investor.
Before you apply for an exemption, refer to the Treasurer’s guidelines to determine your eligibility. You will need to provide detailed documents about your business, ownership structure and local operations.
