Australia: Foreign Owners when to lodge your Vacancy fee return

1. Introduction 

The vacancy fee for foreign owners of residential properties was introduced December 2017 by the Australian government to encourage foreign owners to make their properties available for rent to increase housing in Australia. 

2. Annual vacancy fee 

Foreign owners pay an annual vacancy fee on residential properties not rented or occupied for more than 183 days (6 months in any 12 month period). 

3. Who needs to lodge a vacancy fee return 

a) made a foreign investment application for residential property after 7.30pm AEST on 9 May 2017 

b) purchased under a New Dwelling Exemption Certificate that a developer applied for after 7.30pm AEST on 9 May 2017 

c) purchased residential property before 9 May 2017 and failed to submit a foreign investment application 

d) vacant land holdings do not apply 

e) must lodge a return if property is vacant or rented 

f) tenants in common lodge separate annual vacancy fee 

g) joint tenants lodge one annual vacancy fee 

h) no return necessary if dwelling sold or transferred 

i) no return necessary if no longer a foreign person 

4. Who can lodge a vacancy fee return 

You may lodge your own vacancy fee return or use an authorised agent

5. What is the vacancy year 

A vacancy year commences from the date you occupied the property and had a continuous interest in the property. 

A vacancy year is a unique year, a successive period of 12 months. 

6. When is the occupation day 

The first day you have the right to occupy the residential property. It is the settlement date for an established property, if a new property the date of issue of the fitness for occupancy certificate. 

7. When is a residential property occupied 

Occupancy is considered to apply in any 183 day period: 

a) if an owner \ relative occupied the property as a residence 

b) genuinely occupied under a lease \ licence for minimum terms of 30days 

c) genuinely made available forrentfor minimum terms of 30 days 

The 183 days of occupancy can be over 12 months and not necessarily continuous, but must be at periods of more than 30 days each period of occupancy. 

8. Vacancy fee exemptions This will apply if: 

a) property is damaged or unfit to occupy 

b) is under repair \ renovation 

c) restricted under a legal constraint 

d) occupier is absent due to medical treatment 

9. Fee Waivers 

Fee waivers will be considered on a case by case basis

10. When to lodge 

Must be lodged within 30 days at the end of each vacancy year 

11. Paying the vacancy fee 

After lodging the vacancy fee return the confirmation page shall advise the amount payable plus an email confirming the same. 

12. What penalties may apply 

If you fail to lodge the vacancy fee return, you may still be required to pay a fee. 

You may also receive an infringement or civil penalty if you fail to lodge or lodge late and if you do not maintain records for 5 years after the end of the vacancy year. 

13. If your situation changes 

You must keep your details up to date. 

14. Self-disclose a breach 

You must report any breaches on the relevant forms.

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