Absentee Property Owner – Tax Whack - Victoria

This tax could mean expenses excluding interest exceed any rental income    

As a simple illustration for land with a site value of $3m normal land tax would be $24,975 p.a. but if the owner is non-resident, tax is $84,975 p.a.

An absentee individual is any individual who:-

• is not an Australian citizen or permanent resident
• does not ordinarily reside in Australia, and
• was absent from Australia
  • on 31 December of the year prior to the tax year, or
  • for more than six months in total in the calendar year prior to the tax year.

An absentee corporation is a corporation:

• that is incorporated outside Australia, or
• in which an absentee person(s) has a controlling interest.

An absentee trust can have at least one beneficiary who is an absentee person.

This tax could mean expenses excluding interest exceed any rental income – great care is needed if potentially relevant. And the obligation is on the owner to advise SRO of their absentee status.

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