Australia: Property Taxes

Victoria's Windfall Gains Tax captures up to 50% of land value increases resulting from government rezoning decisions. Understanding when this tax applies, how it's calculated, and what exemptions exist is crucial for landowners, developers and investors assessing project viability or negotiating transactions involving rezoned land.

Victoria's Vacant Residential Land Tax has expanded statewide from 2025, introducing progressive tax rates of up to 3% on properties left unoccupied for more than six months annually. Property owners across Victoria now face strict notification requirements and substantial penalties, with rates escalating based on consecutive years of vacancy.

Foreign purchasers and permanent residents buying property in NSW face significantly increased surcharge duties and land tax obligations following the 2024-25 State Budget changes. With surcharge rates now at 9% for purchaser duty and 5% for land tax, understanding eligibility requirements—including the critical 200-day presence rule—has become essential to avoid costly compliance errors that Revenue NSW actively audits.

The YTL decision provides much needed judicial guidance on how Division 855 is applied for foreign resident investors selling shares or membership interests.

Economic entitlements duty was introduced to prevent duty avoidance through creative joint venture structures.

On 15 October 2025, the Victorian Government proposed a suite of amendments to existing taxation acts as part of the State Taxation Further Amendment Bill 2025 (the Bill).

Navigating property taxes can be challenging, but staying informed is key to avoiding penalties and ensuring compliance.

Navigating property taxes can be challenging, but staying informed is key to avoiding penalties and ensuring compliance.

Property purchased in a trust post 28 November 2023 cannot be exempt from VRLT except in its first year of purchase.