How Melbourne Property Taxes Are Calculated

Whether you are currently living in melbourne property tax or only considering becoming a resident, it’s crucial to understand how the city sets its real property taxes. If you’re planning on buying a home in the area, learn how West Melbourne applies its property levies to ensure your purchase is a wise financial decision.

Property taxes help fund various local services. A major portion goes towards district schools. Other big-ticket items include local government worker salaries/benefits and public safety with police and fire departments. Then there’s street construction and maintenance, water and sewer treatment plants, waste disposal, and organized recreation services like parks.

Expert Conveyancing Services Across Victoria: Navigating Melbourne’s Landscape

The congestion levy, an annual fee introduced in 2005, is charged each year to owners of off-street parking spaces in two areas of inner Melbourne. It aims to reduce traffic congestion in the city by encouraging drivers to use public transport.

Starting in 2018, residential vacancies will attract the new vacant land tax, which is calculated based on occupation in the previous year. This means that in order to avoid the tax, a property needs to be occupied for six months during the same calendar year. However, the period of vacancy does not need to be continuous and can be broken down into parts such as January to April and then July to December. The new tax also applies to vacant investment properties, holiday homes and rental homes, even if they are rented out on a casual basis during the year.

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