Effective 1 January 2025, the Short Stay Levy Act 2024 (Vic) introduced a 7.5% levy on short-term accommodation bookings. This levy has widely become known as the “Airbnb tax” and is aimed at addressing the state’s housing shortage by encouraging property owners of current short-stay rentals to transition their properties into long-term leasing options, thereby increasing the availability of permanent housing.

In this HA Housing Insights series, we shine a spotlight on the housing crisis and speak with key industry experts to gain a comprehensive understanding of the challenges faced in delivering housing outcomes and potential solutions.

In the fifth instalment of our HA Housing Insights series we speak with Brian Farrelly, Partner and Executive Director at Pitcher Partners Melbourne within the Tax Advisory Group to hear his views.

The recent VCAT decision of Caloutas as trustee for Caloutas Family Trust v Commissioner of State Revenue [2025] VCAT explored how bare or fixed trusts intersect with the Victoria land tax trust surcharge provisions.

In a Private Binding Ruling, the ATO determined that payment of a death benefit to a spouse’s estate is not tax-free under section 302-10(2) of the Income Tax Assessment Act 1997.

A transfer of dutiable property made without monetary consideration to a trustee or custodian of a complying superannuation fund where there is no change in the beneficial ownership of the property. 

The Victorian Government introduces new bill imposing a levy or tax of 7.5% on short-term accommodations

The Victorian Court of Appeal’s recent decision in Oliver Hume Property Funds (Broad Gully Rd) Diamond Creek Pty Ltd v Commissioner of State Revenue [2024] VSCA 175 has settled that, in Victoria, aggregation applies to the acquisition of shares or units by investors, even in circumstances where the investors are unrelated under the one syndication or capital raising process.

Property was mistakenly transferred to an unrelated company. Error was found 10 years later, real owners sought exemption to land transfer (stamp) duty. Costs for the responsible law firm pursued, emphasising the importance of due diligence in property transactions.

The High Court has ruled on the ‘dominant use test’ for the primary production land tax exemption. In the recent Godolphin case, the multifactorial analysis has been confirmed with no one factor being regarded as determinative. The Court has clarified that the ‘dominant use’ requirement qualifies must be both the lands use as well as its purpose.

On 4 June 2024, the State Taxation Amendment Act 2024 (Act) received Royal Assent. The Act, amongst other significant taxation changes, amends the holiday home exemption by introducing new provisions to section 88A of the Land Tax Act 2005 (LTA).

Taxpayer successfully appeals against Victorian State Revenue Office (SRO) decision that land owned by them was not eligible for the primary production land tax exemption.

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.

This ruling from the New South Wales Civil and Administrative Tribunal (the Tribunal) serves as an important reminder for ensuring that discretionary trust deeds are appropriately amended to prevent the activation of "foreign" land transfer (stamp) duty and land tax surcharges