Thousands of northern Victorian property owners will be hit with a large tax bill from the State Revenue Office right on Christmas.
The Vacant Residential Land Tax (VRLT) is one of the 57 new or increased taxes introduced by the Allan Labor Government.
The Nationals’ Member for Northern Victoria Gaelle Broad said the VRLT was one of a raft of taxes designed to target property owners.
It comes on top of the Short Stay Rental Tax (or holiday tax) which will apply from January 1, as well as massive land tax bills for many residents.
Ms Broad said Labor’s VRLT targets families and individuals who have more than one additional property to their family home, such as a holiday house, Airbnb rental or an apartment in the city.
“Labor’s new tax primarily has two aims – to raise revenue to help pay for its billion-dollar budget blowouts on mismanaged city-centric projects – or to force people to sell their properties to help address the housing crisis it created,” Ms Broad said.
Homeowners with two residences will need to prove to the State Revenue Office that the second home has not been unattended for six months and has been lived in for four or more weeks.
Ms Broad said the timing of Labor’s new housing tax could not be worse.
“Residents are genuinely shocked to receive a large tax bill right on Christmas during a cost-of-living crisis. They are further distressed to find out the tax levy increases in subsequent years.
“Labor’s new attack on mum and dad investors will adversely impact the holiday rental market and visitor economy right across northern Victoria. Short stay rentals enable families to enjoy a holiday in our regional areas and they provide housing for visiting workers.
“The Allan Government should be incentivising tourism outside of the tram tracks of Melbourne, not restricting it. More visitors in our smaller towns equates to more support for our local hospitality businesses and our struggling retail sector.
“Labor has introduced 57 new or increased taxes and 30 of these apply to property.
“This heavy-handed approach is crushing Victorian investors, hurting tourism and destroying the rental property market. Labor cannot manage money, can’t manage tourism and regional Victorians are paying the price.”
Media Contact: Linda Barrow 0484 303 764 linda.barrow@parliament.vic.gov.au
