Land tax requirements have changed, as of the 1st of January 2024
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Historically, Purchasers had to pay the vendors’ unpaid land tax for the rest of the calendar year
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Due to new reforms, this is no longer the case
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Land tax no longer needs to be adjusted between the vendor and purchaser
Land tax requirements underwent a shift on January 1, 2024. Previously, buyers covered the vendor’s unpaid land tax for the calendar year, but new reforms have abolished this practice. Unpaid Land tax adjustments are no longer necessary between the vendor and purchaser.
Buying a property can be overwhelming, especially when you factor in the sometimes hefty taxes involved in conveyancing property settlements. Hidden government costs, like Victorian land tax, can add to the frustration, considering buyers are already investing a significant portion of their savings into the property.
Traditionally, buyers were stuck with the practice of paying the seller’s land tax for the entire calendar year. This can feel unfair, especially when buyers typically don’t have to deal with land tax themselves, especially if it’s their primary residence.
Good news came with the State Taxation and Other Acts Amendment Act 2023 (Vic), which got the green light on January 1, 2024. This new law puts a stop to the apportionment
(or ‘adjustment’) of land tax between sellers and buyers. This change aims to spare purchasers from unexpected costs, marking a significant shift in the conveyancing landscape. If you’re entering into a contract after January 1, make sure you’re aware of this new rule. You can find more details on the State Revenue Office website:
link: https://www.sro.vic.gov.au/land-tax
At Conveyancing Excellence, we have extensive experience navigating through evolving conveyancing laws. Reach out to us for advice on Stamp Duty, Land Tax, and other conveyancing-related matters. Your peace of mind matters to us!
*Blog posts are not intended as professional advice. Laws in the State of Victoria are always subject to change. Please consult our office for the most up to date information.
