New Land Tax Exemption for Social and Emergency Housing
The Victorian State Budget for 2024/2025 has revealed a new tax measure for land utilised in social and emergency housing. This new land tax exemption aims to clarify existing arrangements, ensuring landowners involved in such housing initiatives are not burdened by excessive land tax obligations.
The exemption will be introduced from 1 January 2025, being the 2025 land tax year. This tax exemption will apply to land that is used to provide social and emergency housing along with charity-owned land on which social and emergency housing is under development.
This is a welcomed announcement for the charity sector and community housing sector, addressing issues from the recent amendments regarding occupancy requirements for charitable land, where leased land was at risk of losing its exemption eligibility.
The State Taxation Amendment Bill 2024 (Amendment Bill) was given royal assent on 4 June 2024. The Amendment Bill inserts a new “social housing” and ‘emergency housing” exemption for land tax.
Social housing
The social housing exemption will apply to land that is used solely for social housing that is occupied/vacant to be occupied by individuals listed in the Victorian Housing Register or if it's owned by a charitable institution and declared vacant for future social housing use. The Commissioner determines these exemptions, ensuring that the land meets eligibility criteria and will be used for social housing within a specified timeframe.
Emergency housing
Land qualifies for an exemption if it's used solely for accommodation owned, controlled, or managed by charitable institutions, agencies, or public authorities, and occupied by individuals experiencing homelessness, family violence, or at risk of homelessness or family violence.
The accommodation provided is non-permanent and offered at below-market rent. Additionally, land owned by charitable institutions and declared vacant for future emergency housing use also qualifies for the exemption. The Commissioner ensures that the land meets eligibility criteria and will be used for emergency housing within a specified timeframe.
Further details and guidance will be released later in the year, we will provide an update once the information becomes available.
Briget O’Callaghan
Principal Lawyer
T 03 5225 5244 | M 0436 456 144
E bocallaghan@ha.legal
Evelyn Zeglinas
Associate
T 03 5225 5245
E ezeglinas@ha.legal
Ben Smith
Lawyer
T: 03 5225 5262
E: bsmith@ha.legal
Maddi Batchelor
Graduate Lawyer
T: 03 5225 5214
E: mbatchelor@ha.legal
