For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Vacant Tax

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<div class="cq-article-content-paras section">
Residential property developers are expected to escape a new tax measure which prohibits deductions for expenses associated with holding vacant land.
The measure was included in the "tax integrity" initiatives in Tuesday's budget, as the federal government turned its attention to land-banking in the housing affordability consideration.
The move to abolish expenses raised concerns in the development industry that its costs for holding land could rise as a result.
However, Property Council of Australia chief executive Ken Morrison told Fairfax Media on Wednesday he had clarified the situation with the Treasurer's office.
</div>
<div class="cq-article-content-media section">"So long as there is an operating business being undertaken on the land then this measure won't apply," Mr Morrison said.</div>
<div class="cq-article-content-paras section">
<div id="article-inline-ad" class="adWrapper"> </div>
</div>
<div class="related-quotes section">"In the vast majority of cases for development companies that will be the case, so this is not a big bogey man for the industry that some have speculated."</div>
<div class="cq-article-content-paras section">
According to Treasury, the initiative will raise $50 million in revenue for the government over the forward four years estimates period.
"This is an integrity measure to address concerns that deductions are being improperly claimed for expenses, such as interest costs, related to holding vacant land, where the land is not genuinely held for the purpose of earning assessable income," it said in the budget papers.
</div>
<div class="cq-article-content-paras section">
"It will also reduce tax incentives for land banking, which deny the use of land for housing or other development."
The measure is set to take effect from July 1 next year.
Treasury said the new measure will apply to land held for residential or commercial purposes.
"However, the 'carrying on a business' test will generally exclude land held for commercial development," it said.
</div>
<div class="cq-article-content-media section">Further detail will emerge in legislation at the aim of targeting of individuals who had chosen to hold land and claimed expenses for a development that didn't eventuate.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">Before the PCA's clarification was obtained, Frasers Property Australia chief executive Rod Fehring suggested the new tax measure that prohibits deductions for expenses associated with holding vacant land, "reflects a lack of understanding" from the federal government. <div class="cq-article-content-paras section">
"From our point or view, we can't ignore it, we have to be exempted from it, or we will have to change our business model, which is to find ways not to own land and develop it … that's the capital-efficient thing to do," Mr Fehring told Fairfax Media during Frasers Property first-half results presentation in Singapore.
</div>
<div class="cq-article-content-media section">"It is not viable for development purposes. I don't see how adding another tax to land and housing products, that land is raw material for, will make housing more affordable."</div>
<div class="cq-article-content-paras section">
"We pay land tax, we pay development contributions, we pay state infrastructure contributions, we pay stamp duty, we pay foreign purchasers surcharge, we pay rates, need I go on?" Mr Fehring said.
"I am not enthusiastic, it is highly counter-productive … supply will be further constrained."
</div>
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j.ballantyne1990-6AQqhLzZaK

Land banking tax measures not likely to affect major residential property developers

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A vacant residential property tax (VRPT) was introduced from 1 January 2018 in Victoria. From January 1, the new 1 per cent Vacant Residential Property Tax will apply to properties in 16 councils that are not occupied for six months of the year. The Victorian Government introduced this tax with the claim it would help address the lack of housing supply in Victoria.
If you own a property in one of the affected Melbourne council areas and it was unoccupied for six months or more between 1 May and 31 December 2017, you must notify State Revenue Victoria by 15 January 2018.
As the legislation was only introduced into the Victorian Parliament in May 2017, homes will be considered to have been occupied between 1 January and 30 April 2017. This means, for the 2017 calendar year, homes will only need to be occupied for a further two months between 1 May and 31 December to be considered to have been occupied for more than six months.
Its compliance program will look at both non-reporting of vacant properties and incorrect exemption claims.
<ol>
<li>What is the vacant residential land tax?</li>
</ol>
The vacant residential land tax (commonly referred to as the vacant residential property tax or vacancy tax) is a tax on residential properties in the inner and middle suburbs of Melbourne which are unoccupied for more than six months a year.
<ol start="2">
<li>What is meant by "vacant"?</li>
</ol>
A property will be considered vacant if it was unoccupied for more than six months in the preceding calendar year by:
The owner, or the owner’s permitted occupier, as their principal place of residence, or
A person under a lease or short-term letting arrangement
The six months does not need to be continuous.
<ol start="3">
<li>When does the tax start?</li>
</ol>
The tax will apply from 1 January 2018 and is based on use and occupation in the preceding year. For example, tax liabilities for the 2018 tax year will based on vacancy in 2017, tax liabilities for the 2019 tax year will based on vacancy in 2018 and so on.
<ol start="4">
<li>Does the tax apply to all residential properties in Victoria?</li>
</ol>
No. The tax will only apply to vacant residential properties located in the following local council areas:
Banyule
Bayside
Boroondara
Darebin
Glen Eira
Hobsons Bay
Manningham
Maribyrnong
Melbourne
Monash
Moonee Valley
Moreland
Port Phillip
Stonnington
Whitehorse
Yarra
<ol start="5">
<li>How much is the tax and how is it calculated?</li>
</ol>
This is an annual tax of 1 per cent of the capital improved value (CIV) of taxable land. For example, if the taxable land has a CIV of $500,000, the tax will be $5000, if the taxable land has a CIV of $1,000,000, the tax will be $10,000.
The CIV of a property is the value of land and buildings as determined by the general valuation process. The CIV of a property is displayed on your council rates notice. It is not always displayed on all four quarterly rates notices, but will always appear on the first notice issues in the financial year.
<ol start="6">
<li>Are there any exemptions?</li>
</ol>
Yes. In addition to existing exemptions for land tax purposes, there will be several new exemptions which will apply to the vacant residential land tax. These include exemptions for:
Holiday homes, (see point 7 below)
City apartments/homes/units used for work purposes, (see point 8 below)
Property transfers during the year, (see point 9 below) and
New residential properties (see point 10 below)
<ol start="7">
<li>When is a holiday home exempt?</li>
</ol>
The holiday home exemption will apply to properties which are occupied as a second home by the owner for at least four weeks in the year.
This exemption will be subject to the following conditions:
The land owner must have had a principal place of residence in Australia in the preceding year, and
The Commissioner of State Revenue must be satisfied that the property for which the exemption is being sought is a genuine holiday home
An owner will only be able to claim the exemption in respect of one holiday home in a calendar year.   
<ol start="8">
<li>When is a residential property used for work purposes exempt?</li>
</ol>
This exemption is designed for properties owned and used by people who stay in the inner and middle suburbs of Melbourne for work purposes, but whose principal place of residence is elsewhere in Australia.
The exemption will apply to properties that are occupied for at least 140 days a year for the purpose of attending the owner’s workplace.
This exemption will be subject to the following conditions:
The land owner had a principal place of residence in Australia in the preceding tax year, and
The place of work must be in one of the specified local council areas
<ol start="9">
<li>What if a property changes ownership during a year?</li>
</ol>
Land that changes ownership during the year will be exempt from the tax in the following calendar year. For example, if a property is sold and transferred during 2018, it will be exempt from the tax for the 2019 tax year.
<ol start="10">
<li>What if a property is converted to residential premises during a year?</li>
</ol>
Land that becomes “residential land” during the year will not be subject to the vacant residential land tax in the following calendar year. For example, if a warehouse is converted into residential apartments during 2018, it will be exempt from the vacant residential land tax for the 2019 calendar year.
<ol start="11">
<li>How will the SRO know if you have vacant property?</li>
</ol>
Owners of vacant residential properties located within the specified local council area will be required to notify the Commissioner of State Revenue by 15 January in each year, and provide any information that the Commissioner requests. If a property is eligible for an exemption, the land owner will be asked to notify the SRO and advise which exemption applies.
If an owner fails to make a notification by 15 January, it will be a notification default and may be subject to penalty tax under the Taxation Administration Act 1997.
The State Revenue Office will conduct monitoring and compliance activities to ensure that vacant residences are being declared as required. Their compliance program includes comparing their data with other state and federal agencies, and conducting investigations into suspected avoidance. For example they may check water usage with relevant water authorities as a lack of water usage is a good indicator that a property is vacant.
<ol start="12">
<li>Does the tax apply to properties leased through online platforms?</li>
</ol>
Yes. If a property in one of the specified local council areas is leased through an online platform such as AIRBNB, it will be subject to the tax if it is unoccupied for more than six months in a calendar year. The six months does not need to be continuous.
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Vacant Melbourne property owners need to meet January 15 notification deadline

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The ACT government’s budget earlier this month signalled three major changes for the property market.
The changes include extension of the land tax to all homes that are not the owner’s principal place of residence, whether they are rented or not, said lawyers Meyer Vandenberg in a note. The new tax is expected to raise an additional $2 million in revenue annually and will be implemented from July 1, 2018.
In a nutshell, it is a vacancy tax. Earlier this year, Victoria had announced a vacancy tax and the Federal Budget also announced a new tax on vacant properties owned by foreigners in its efforts to address housing affordability.
At present, land tax is already paid by owners of residential properties that are rented, or that are owned by a company or a trust. Land tax is not paid by the owners of commercial property.
The basis for calculating land tax, and the marginal rates, will also change on 1 July 2017, said the law firm.
Another change is the stamp duty on the transfer of commercial properties. From July 1, 2018, stamp duty on the transfer of a commercial property valued at less than $1.5 million will be abolished. 
Stamp duty will be paid at a rate of 5% where a property is valued at $1.5 million or more. 
“This will mean that the majority of commercial conveyance transactions in the ACT will not be subject to stamp duty from 1 July 2018,” they said.
Also, from June 7, 2017 stamp duty rates will change for commercial and residential properties. The commercial stamp duty rate will be effectively half of the residential stamp duty rate, they said.
From July 1, the government has also changed the Lease Variation Charge (LVC) applicable to varying crown leases to limit the maximum number of residential dwellings permitted on the land. This applies where a crown lease doesn’t currently specify the maximum number of dwellings.
Currently, a variation of this type of crown lease would incur an LVC of $7,500 per dwelling for the first three dwellings, and $5,000 for each additional dwelling.
“We understand that from 1 July 2017, the new LVC will be calculated on the basis of a flat charge of $30,000 per dwelling,” the note said.
However, development applications which are formally submitted for a completeness check in eDevelopment before 30 June 2017 will incur the current (lower) LVC.
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jonathanchancellor-7SQnKwU6yx

Land tax to be levied on vacant residential properties in ACT

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The Australian government, seeking to address the perceived issue of foreign buyers hoarding properties, will enact a new tax on any vacant properties owned by foreigners.
"This measure is intended to encourage foreign owners of residential property to make their properties available for rent where they are not used as a residence and so increase the number of dwellings available for Australians to live in."
The new charge will come into effect as of Tuesday night's budget and will be levied annually.
It will bring in $16.3 million over the forward estimates being monitorred by the Australian Tax Office.
There are few details on its implementation. The Victorian tax will be self-reporting. 
Julius Wei, Co-Founder and Head of Investment Analysis at BMY Group said while the plan of a ‘ghost property tax’ doesn’t come from a bad place, though the structure of taxing only foreign investors is "however missing the target." "As the locals definitely hold way more investment properties (considering the negative-gearing advantage they enjoy) than foreign buyers, the tax should apply to all vacant property holders regardless of whether they are local Australians or foreign investors. "This is again more political than directly tackling a financial and economic problem of saying we don’t welcome foreigners, despite local investors have way more influence on the property market.
"At a time when the Australian domestic demand is in deep trouble (checking today’s disastrous retail sales figures), the country should welcome foreign sources of investment, talent and buyers of its exports, not doing the opposite to shut the doors," Julius Wei said.
The Property Council of Australia chief executive Ken Morrison said the vacant property chrarge was a waste of money.
"We have not seen any evidence that the 'vacant property' issue is real," Mr Morrison said,
"It appears to be a policy seeking to solve an 'urban myth'.
Mr Morrison said that the tax "will cost more to administer than it will raise."
"This measure will not improve housing affordability one iota," he told The Australian Financial Review.
Earlier this month Property Observer reported that foreigners who leave their home vacant could be taxed at a Federal level.
Soon after Juwai's Gavin Norris reported on what the new Victoria vacant property tax means for residents.
Similarly earlier this year Property Observer reported that Victoria was to implement a new vacant property tax to tackle its housing affordability issue.
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