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.