Navigating Vacancy Fees: Essential Insights for Northern Beaches Property Owners

Are you a property owner in the Northern Beaches area? The Australian government is clamping down on foreign-owned properties, which could impact you. The rising property prices are being attributed to excessive foreign ownership and a lack of rental activity. Imagine receiving a notice demanding an annual vacancy fee of up to $300,000 for your property, with the possibility of the government placing a charge against your property or even selling it if payment isn’t received. Ensure timely vacancy fee return lodgement to avoid potential penalties.

Navigating Vacancy Fee Return Lodgement

Enacted by the Australian Federal Government in May 2017, the vacancy fee return mandates that foreign property owners file an annual return with the Australian Taxation Office within 30 days of the anniversary year’s end. Specific guidelines stipulated by the Australian Taxation Office and the Australian Foreign Investment Review Board govern filing criteria.

Meeting Filing Criteria and Exemptions

Unless specific conditions apply, properties acquired before May 9, 2017, typically do not require a vacancy fee return. Jointly-owned properties have unique filing requirements contingent on ownership structures.

Preventing Penalties

To avoid vacancy fees, your property must be occupied or rented out for at least 183 days annually, with continuous rental periods of at least 30 days. Non-compliance with regulations may result in penalties, such as infringement notices and civil penalties.

Expert Guidance from WISTax

At WISTax, we’re your trusted tax professionals serving the Northern Beaches. Let us guide you through these regulations and ensure compliance. Whether you’re a property owner, real estate agent, or conveyancer, our expertise is here to assist you. Contact us today for personalized advice on vacancy fee obligations and tax accounting needs.

vacancy fee return lodgement

All WISTAX today for an initial free 15-minute telephone consultation with John and his team on 1800 841 312 if you want to join our fast growing accounting franchisee business