Holiday home tax to triple after three years under deal between Allan government, Greens

Land tax will be tripled on Victorian homes that remain unused for three years under a deal struck between the Allan government and the Greens.

Victorian properties that remain unused for three years will be hit with a new tax.

Land tax will be tripled on Victorian properties that remain unused for three years under a last-minute deal struck between the Allan government and the Greens.

The Allan government will this week amend its contentious land tax laws after striking an agreement with the minor party in exchange for their support to pass the Bill through the parliament this week.

Treasurer Tim Pallas last month blindsided the property sector when he announced a one per cent tax on vacant homes would be expanded to include the whole state from 2025.

The tax currently only impacts properties in Melbourne’s inner and middle suburbs with exemptions for those who live at the property at least four weeks a year.

But the government was forced to delay the legislation and head back to the drawing board, after the Greens refused to back the changes without stronger housing reforms.

The Allan government will amend its contentious land tax laws after striking an agreement with the Greens.

Under the revised legislation, the one per cent land tax will increase to two per cent on homes left vacant for two years, before increasing to three per cent if they remain unused for three years.

The government will also trial a new enforcement system across metropolitan Melbourne that will force homeowners to provide records of people living at their residence.

The trial, led by the State Revenue Office, would use utility data to identify homes that aren’t being used in a move that would also enforce the tax rather than relying on people to self-report.

On Tuesday, Greens leader Samantha Ratnam said the minor party had secured changes that would free up thousands of empty homes and help renters struggling to find a secure, affordable home.

“Pressure works. Every day this housing crisis is getting worse. We’re seeing renters face unlimited rent increases and struggle to find a rental home,” Dr Ratnam said.

“If Labor wants to continue passing their housing statement through parliament, they’re going to need to work with us on the kinds of solutions that will fix this crisis.

“We won’t accept crumbs in a crisis.”