Shock for landlords as land tax skyrockets

Over the past month soaring property values have seen landlords hit by steep increases in landlord taxes.

A number of landlords, property owners and lessors have been shocked when confronted with sharp increases in land tax bills this month.

The State Revenue Office (SRO) argues that 2016 was a revaluation year, which means your site value will most likely increase in 2017.

If a property owner has signed a 15-year lease with two 10-year options before the last land tax rise, they could be significantly out of pocket. 

The retail tenancy laws prohibit landlords from passing on land taxes to their tenants unless the business is a listed company.

The Victorian government 2017-18 budget forecasts land tax revenue to rise a 22 per cent this financial year to $2.225 billion.

Affected the most was Inner-city commercial property values which increased more than most. Melbourne, Port Phillip, Yarra, Stonnington, Bayside, Whitehorse, Manningham and Boroondara saw increases between 14 and 25 percent.

The Property Council of Australia came forward and announced it would support a review to ensure a flatter and fairer land tax system that attracts investment and growth.

For more information, please contact:

Peter Zervos
Director – Business Advisory
+61 3 9608 0167
pzervos@moorestephens.com.au