Land Tax Obligations for Victorian Property Owners: What You Need to Know
Land Tax Obligations for Victorian Property Owners: What You Need to Know
If you are unsure how these changes affect you, or require assistance with notifications or exemptions, please contact our office on 03 8746 7700 and speak with your Accountant.
Information obtained and referenced from the State Revenue Office of Victoria.
It’s time to process your Taxable Payment Annual Report (TPAR)
If your Business employs contractors and is in the below list of industries, you must lodge your Taxable Payment Annual Report (TPAR) by the 28th of August 2025.
Businesses directly involved in the following services need to lodge TPARs:
- Building and Construction Services
- Cleaning Services
- Courier or Road Freight Services
- Information Technology Services
- Security, Investigation and Surveillance Services
There are two ways you can finalise your Taxable Payment Annual Report.
Option 1: The Easy Way
Let Suntax complete your Taxable Payment Annual Report for you
The cost to prepare your Taxable Payment Annual Report is $240 plus GST. If you choose this option, you do not need to read this article any further.
Option 2: Complete the Taxable Payment Annual Report yourself using the ATO supplied instructions below
By using the instructions below as supplied by the ATO you can complete your Taxable Payment Annual Report yourself.
ATO Instructions on how to complete independently
IMPORTANT NOTE: The processing of your Taxable Payment Annual Report is something the ATO will pursue if not lodged by the due date of August 28th.
Regards,
Your Suntax Team
The ATO have created a way to lift the restricted access to compromised taxpayer accounts.
If your Tax File Number (TFN) has been compromised, the ATO lock down your account and restricts access to ensure security.
In the past, this meant that each year you would need to contact the ATO directly to ask them to remove the restricted access so that we could gain access to your information and complete your tax return. This access would only be granted for 48 hours giving a strict timeline to complete your returns.
Moving forward, if you have a Strong Digital Identity in MyGovID these additional security measures will no longer be required and we will regain full access to your ATO account.
Already have a MyGovID account?
It’s highly likely that you already have a MyGovID account and that the strength is Basic or Standard. You can check this by logging into your app. To increase your identity strength to Strong, you MUST add your passport details and complete a face verification check. This is like a selfie that’s compared to the photo on your passport. The app will prompt you on how to do it. It’s a one-off process to check that you’re a real person, the right person and verifying in real time. At the moment, adding a passport is the only way to gain Strong identity strength.
After upgrading to Strong identity strength, please follow the steps below to complete the process and have the restricted access to your ATO account lifted.
- Go to myGov select Sign in with Digital ID and follow the prompts to sign in and connect your myID.
- Select Australian Taxation Office from your linked services – your online access strength is now set based on the identity strength of your myID (either Strong or Standard).
You can check our the Australian Tax Office Website to watch the video steps.
Don’t have a MyGovID account?
If you don’t already have a MyGovID account, you will need to set one up by following the instructions below.
Firstly, you will need to download the MyGovID app to your smartphone or tablet.
Enter your full name, date of birth and email address. Ensuring you use the same email address associated with your existing Personal MyGov account
Enter the details for your identity documents. You will need to confirm your identity using at least two of the following documents – one of these MUST be your passport. Your name needs to be entered exactly as it would be in the documents including middle names.
- Australian Drivers License
- Australian Birth Certificate
- Medicare Card
- Australian Passport
When adding your passport, you will be asked to complete a face verification check. This is like a selfie that’s compared to the photo on your passport. The app will prompt you on how to do it. It’s a one-off process to check that you’re a real person, the right person and verifying in real time. At the moment, adding a passport is the only way to gain Strong identity strength.
Your MyGovID should now be set up with a ‘Strong’ identity strength
After upgrading to Strong identity strength verification, please follow the steps below to complete the process and have the restricted access to your ATO account lifted.
- Go to myGov select Sign in with Digital ID and follow the prompts to sign in and connect your myID.
- Select Australian Taxation Office from your linked services – your online access strength is now set based on the identity strength of your myID (either Strong or Standard).
You can check our the Australian Tax Office Website to watch the video steps.
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In the complex world of finance and taxation, unexpected audits can pose a significant challenge to businesses and individuals alike. Audit Shield is a tax audit insurance policy offered by accountancy firms, designed to cover the professional fees incurred if a client is audited by the Australian Taxation Office (ATO) or other revenue authorities. It helps protect against the unexpected costs of audit activity, which can be substantial
What Does Audit Shield Cover?
Audit Shield primarily covers the professional fees incurred by accountants when assisting clients through audits, inquiries, investigations, reviews, or examinations of lodged tax returns. This comprehensive coverage includes fees associated with preparing necessary documents, responding to queries from the ATO, and even engaging specialists if required.
Why Choose Audit Shield?
Audit activity can be stressful and costly for businesses, especially small businesses that may not have the financial backing to handle unexpected expenses. Audit Shield offers a fixed, cost-effective way to cover these costs, helping clients stay focused on their core business.
Who Can Benefit from Audit Shield?
Audit Shield is ideally suited for a range of entities, including:
- Small Businesses: Often more vulnerable to financial strain from unexpected audit costs.
- Frequently Audited Sectors: Such as healthcare, construction, and professional services.
- Complex Tax Situations: Where the likelihood of audit activity may be higher.
- Individuals and Self-Managed Super Funds (SMSFs): Providing protection against personal tax audits.
How Does Audit Shield Work?
Adding Audit Shield to your accounting services is easy. It’s offered as an optional extra by us as your accountant and acts like a financial safety net if you’re audited by the ATO or other tax authorities.
If an audit happens, the professional accounting fees charged to assist—like preparing documents or responding to the ATO—can be claimed through Audit Shield for reimbursement.
A tax deduction should be claimable for participation fees.
Audit Shield helps take the worry out of audits. It’s a smart, proactive way to protect yourself or your business from unexpected costs, so you can feel confident and covered if the ATO comes knocking.
Your Suntax Team
Want to know more about participating in Audit Shield?
Contact us on 03 8746 7700
Resources:
Audit Shield Coverage
Are you protected by Audit Shield?
On Tuesday 25 March 2025, Treasurer Jim Chalmers announced the 2025–26 Australian Federal Budget with updates to key economic forecasts and laying the groundwork for a potential federal election
The focus of our summary is on the key tax related announcements of the budget.
Personal Income Tax Cuts
The budget introduced unexpected new cuts in personal income tax, building on the initial round implemented from July 2024.
Commencing July 1, 2026, taxpayers earning between $18,201 and $45,000 will benefit from a reduced rate, dropping from 16% to 15%. This rate is set to further decrease to 14% from July 1, 2027.
Under the government’s new tax cuts:
- From 1 July 2026, the 16 per cent rate will be reduced to 15 per cent.
- From 1 July 2027, the 15 per cent rate will be further reduced to 14 per cent.
An Increased Medicare levy for low-income thresholds.
To alleviate the cost of living, the Medicare levy low-income thresholds for singles, families, seniors, and pensioners have been increased. This adjustment ensures that individuals with lower incomes either pay no Medicare levy or pay at a reduced rate, aligning with 2024 thresholds in the table below: 
Table Information Source: NTAA Tax Cuts Handout
Energy bill relief
The energy rebate has also been extended until the end of 2025 for eligible Australian households and small business giving households an extra $150 off their energy bill this year. ($75 per quarter until 31 December 2025)
The federal government announced the energy bill relief plan of budget night as part of its re-election strategy. Treasurer Jim Chalmers stated that past rebates had “helped take some of the sting out of energy costs”.
HECS\HELP repayment threshold being increased
Effective June 1, 2025, the government will implement a one-time 20% reduction in HELP (Higher Education Loan Program) debts before the next indexation. This reduction is expected to save graduates with an average debt of $27,600 approximately $5,520.
Furthermore, the minimum repayment threshold for HELP debts will rise from $54,435 in 2024-25 to $67,000 in 2025-26. Repayments will now be based only on income exceeding this new threshold.
The Small business $20,000 instant asset write-off has been abolished
The federal government has slashed the popular instant asset write-off scheme from 30 June 2025, ending the current $20,000 threshold and reducing this to only $1,000 which will negatively impact many of our small business clients from 1 July 2025.
Your Suntax Team
Recent changes have been made to the Vacant Residential Land Tax (VRLT). If you own residential property that is unoccupied for more than six months in a calendar year, you may be subject to this tax.
What Is the Vacant Residential Land Tax (VRLT)?
Introduced by the Victorian Government in 2018 the Vacant Residential Land Tax (VRLT) aims to improve housing availability by encouraging property owners to avoid leaving residential properties vacant for extended periods.
Previously, this tax applied only to properties in Melbourne’s inner and middle suburbs that were unoccupied for more than six months in the prior calendar year. However, starting 1 January 2025, significant changes will come into effect, broadening its reach statewide and modifying the tax structure.
Key Changes to note from 01 January 2025.
Statewide Application:
Beginning in 2025, the Vacant Residential Land Tax (VRLT) will no longer be restricted to Melbourne’s suburbs. It will now apply to vacant residential properties throughout Victoria.
Progressive Tax Rates:
The tax rate will increase based on the number of consecutive years a property remains vacant:
- 1% of the Capital Improved Value (CIV) for the first year of vacancy.
- 2% of the CIV for the second consecutive year.
- 3% of the CIV for the third consecutive year and beyond.
Holiday Home Exemption:
This exemption applies to properties used for a minimum of four weeks per year by the owner or a close relative. Companies or trusts are eligible only if they have owned the property continuously since 28 November 2023.
Work Accommodation Exemption:
Available for properties occupied for at least 140 days per year for work-related purposes.
Properties Under Construction or Renovation:
Properties under construction or renovation are exempt for up to two years, with potential extensions granted for delays beyond the owner’s control.
What actions should you take if you are impacted & why this is important.
The expansion of the VRLT represents a major change that could impact many property owners who were previously exempt. It’s essential to take the necessary steps to prevent unexpected tax liabilities and penalties.
If you own residential property in Victoria, you must:
1 – Review Your Properties – Check if any of your properties were vacant for more than six months in the previous calendar year.
2 – If Your Property Was Vacant for More Than 6 Months, Notify the State Revenue Office (SRO) – You are required to notify the SRO through their online portal by 15 January each year.
This includes:
- Reporting vacant properties.
- Applying for any relevant exemptions (e.g., holiday home or work accommodation).
- Updating your contact details or ownership information.
3 – Ensure Compliance – Failing to notify the SRO or submitting late notifications may result in penalties under the Taxation Administration Act 1997, as well as interest on any outstanding payments.
For more information about the tax and to access the SRO online portal, please visit:
https://www.sro.vic.gov.au/vacant-residential-land-tax
It’s time to process your Taxable Payment Annual Report (TPAR)
If your Business employs contractors and is in the below list of industries, you must lodge your Taxable Payment Annual Report (TPAR) by the 28th of August 2024.
Businesses directly involved in the following services need to lodge TPARs:
- Building and Construction Services
- Cleaning Services
- Courier or Road Freight Services
- Information Technology Services
- Security, Investigation and Surveillance Services
There are two ways you can finalise your Taxable Payment Annual Report.
Option 1: The Easy Way
Let Suntax complete your Taxable Payment Annual Report for you
The cost to prepare your Taxable Payment Annual Report is $230 plus GST. If you choose this option, you do not need to read this newsletter any further.
Option 2: Complete the Taxable Payment Annual Report yourself using the ATO supplied instructions below
By using the instructions below as supplied by the ATO you can complete your Taxable Payment Annual Report yourself.
ATO Instructions on how to complete independently
IMPORTANT NOTE: The processing of your Taxable Payment Annual Report is something the ATO will pursue if not lodged by the due date of August 28th.
It’s time to process your EOFY Payroll using Single Touch Payroll (STP). 
Employees now access their Income Statements (previously known as Payment Summary or Group Certificate) through their personal MyGov account. This happens after you have completed your Single Touch Payroll processing.
Single Touch Payroll finalisation must be completed by 14 July 2024.
To finalise your Single Touch Payroll in Xero you need to complete your End of year Employer Reporting. There are two ways you can do this:
Option 1: The Easy Way
Let Suntax complete your Employer Reporting for you.
The cost to prepare Employer Reporting will be as follows:
- STP Finalisation – $150 + GST and $20 + GST per employee
- Annual Workers Compensation – Declaration of Rateable Remuneration
- $90 + GST if we are completing STP Finalisation
- $190 + GST if we are not completing STP Finalisation
- Payroll Tax Annual Reconciliation – $250 + GST per state reconciliation
If you choose this option, you do not need to read this newsletter any further.
Request Suntax to complete STP Finalisation
Option 2: Complete the Employer STP Finalisation Yourself
Step 1 – Complete the Instructions on the Xero Payroll Checklist
Step 2 – Workers Compensation Annual Declaration of Rateable Remuneration
At the end of each financial year, employers are required to declare their total rateable remuneration to their Workers Compensation insurer and an estimation of the following year’s remuneration. If you employ staff in various states, you may be required to hold a workers compensation policy for each state. Please let us know if you would like assistance with this.
If you are registered for Workers Compensation, your insurer will issue a Tax Invoice shortly after the end of the financial year. This tax invoice will provide details on how to access your online account if you haven’t done so already. By logging onto your online account, you can make the declaration online.
If you only employ staff in Victoria, here is a link to assist you in calculating your remuneration: Remuneration inclusions and exclusions
Or, if you would like further information about Workers Compensation Insurance in Victoria, click on this link: More Information about Victorian Workers Compensation Insurance
Step 3 – Payroll Tax Annual Reconciliation (if applicable)
Payroll tax is a state government imposed tax with varying thresholds and rates for each state. If you employ staff in multiple states and you need advice on your payroll tax status, please contact us. If you only employ staff in Victoria and your total wages plus superannuation exceeds $700,000 for the 2024 FY, then you will be required to register for Payroll Tax.
At the end of each financial year, if you are registered for Payroll Tax, you are required to submit an Annual Reconciliation.
We know it has been another year of challenges and EOFY can be a particularly hectic time, so if these steps seem too onerous or time consuming please remember we have a team at the ready to process your EOFY Employer Reporting. Just click the button above.
Regards,
Your Suntax Team
The promise of cost-of-living relief has been delivered via the budget on Tuesday as Treasurer Jim Chalmers announced a second consecutive surplus with this years expected $9.3 billion. This is the first time in almost 2 decades two consecutive surplus budgets have been delivered.
Starting July 1, 2024, the Victorian Government has implemented a set of substantial tax cuts with the objective of strengthening economic growth, influencing investments, and easing financial burdens for both individuals and business.
The focus of our summary is on the key tax related announcements of the budget.
The Federal Budget update included changes to several tax measures that had previously been announced and implemented, including:
Stage 3 Tax Cuts
Under the Changes:
- A reduction to the 19% tax rate to 16% for incomes between $18,201 – $45,000.
- A reduction to the 32.5% rate to 30% for incomes between $45,001 and $135,000.
- An increase in the upper threshold for taxpayers in the 30% bracket from $120,000 to $135,000.
- For taxpayers in the 45% tax bracket an increase to the threshold to $190,001.
Please refer to the below table summary of changes
Table Source: taxcuts.gov.au
What does this mean for you?
All Australians will get a tax cut, but for many on higher incomes (>$160,000) this will be a smaller tax cut than they were expecting, based on the original proposed tax cuts. With the implemented changes you will see an increase in your take home pay each pay cycle from 01 July 2024.
By way of example of the reduction in tax you will pay, if you earn $73,000 annually you will receive a tax cut of $1,504.
Increased Medicare levy low income thresholds
Singles, families, seniors and pensioners benefited from an increase in the Medicare levy low-income threshold amounts that were announced on January 25, 2024.
The new thresholds to provide cost-of-living relief were enacted by the Treasury Laws Amendment (Cost of Living – Medicare Levy) Act 2024.
Changes to the Medicare levy Threshold include:
- The Medicare levy low-income threshold for singles has been increased to $26,000 for 2023-24 (up from $24,276 for 2022-23) from 2023-24 income year,
- For couples with no children, the family income threshold is $43,846 (up from $40,939 for 2022-23)
- The additional amount of threshold is $4,027 for each dependent child or student (up from $3,760)
- For single seniors and pensioners eligible for the Seniors and Pensioners Tax Offset (SAPTO), the Medicare levy low-income threshold is $41,089 (up from $38,365).
Other Key Measures announced on Tuesday, in the 2024-2025 budget
Amended Tax Law – Tax refunds to offset old debt
In the recent federal budget update, where the commissioner had put on hold an old tax debt released prior to 1st January 2017, the Government has proposed to amend the tax law to essentially quarantine any debt prior to that taken from being offset by future refunds.
It will continue to maintain the Commissioner’s current approach and will apply to individuals, small businesses and not for profit organisations.
HECS-HELP Debt Reduction Changes
To implement the first stage of reforms to Australia’s tertiary education system. The Government announced funding by:
- Limiting the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index.
- Introducing a ‘Commonwealth Prac Payment of $319.50 per week, for tertiary students undertaking supervised mandatory placements – for example nurses or teachers. The aim of this additional payment is to reduce the financial burden on those students that are ‘required’ to take up these placements and to encourage and retain more enrolments in such courses.
Support for Small Businesses – Extension to the temporary increase to the instant asset write off
The Government has announced a temporary extension of the instant asset write off by an additional 12 months to June 30, 2025 for Small business with an annual turnover of less than $10 million. Under this scheme, the $20,000 threshold is applicable to each individual asset, enabling small businesses to instantly write off multiple assets. This is yet to be passed as law. It is anticipated that the threshold will reduce back to $1,000 from the 1st July, 2025.
Paid Parental Leave PLUS Superannuation
Currently, the Government funds a Paid Parental Leave (PPL) scheme that is not subject to super contributions. In the update it was announced that eligible parents on Commonwealth- government Paid Parental Leave will be subject to superannuation guarantee contributions of up to 12%. This will be for babies born, or adopted on or after July 1, 2025.
Unpaid Super Entitlements
From 1 July 2024, The Fair Entitlements Guarantee Recovery Program will actively pursue unpaid superannuation entitlements owed by employers who have entered or currently in liquidation or bankruptcy.
This is a very aggressive undertaking by the Government but we feel is justified.
Business Activity Statement ‘BAS’ refunds
Aimed at bolstering the Australian Taxation Office’s (ATO) capacity to combat fraud, the notification period for taxpayers regarding the retention of BAS refunds, Which is currently set at 14 days, will be prolonged to 30 days to match the time limits for non-BAS refunds. These changes will be implemented at the onset of the first financial year following the Royal Assent of the enabling legislation.
With the ever increasing instances of cyber attacks and digital fraud, the Government will provide aid to every small business to enhance their cyber resilience, offering guidance on preparation, response, and recovery through initiatives that will include
– Cyber Warden programs,
– Resilience Services, and
– Cyber Health Checks.
Foreign resident CGT Regime
The foreign resident CGT regime will be tightened for CGT events commencing on or after 1 July 2025. This move aims to ensure that foreign residents fulfil their tax obligations in Australia fairly while providing clearer guidelines on how the rules operate.
- Expand and clarify the range of types of assets subject to CGT for foreign residents.
- Replace the point-in-time principal asset test with a 365-day testing period.
- Mandate that foreign residents notify the ATO before executing transactions involving shares and other membership interests exceeding $20 million in value
FREE DOWNLOAD!
Self Managed Superannuation Funds Corporate VS Individual Trustee
Do you want to choose how you invest and strategically manage your retirement funds?
There are a number of benefits of owning a Self-Managed Superannuation Fund (SMSF). This all begins with selecting the right type of trustee to fit your circumstances. When you establish a Self-Managed Superannuation Fund(SMSF), a trustee is required to be appointed and can either be an Individual Trustee or a Corporate Trustee.
We hope you find our guide on Corporate VS Individual Trustees valuable in assisting you with your decision on owing a SMSF.
If you have any questions, please do not hesitate to give our office a call on 03 8746 7700.
DOWNLOAD HERE
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