Apply for an exemption from the absentee owner surcharge

Background information

A land tax surcharge applies to Victorian land owned by an absentee owner. Absentee owners include absentee corporations and trustees of an absentee trust.  

If you are an absentee corporation or the trustee of an absentee trust, you must pay the surcharge unless you get an exemption.  

We may grant an exemption in certain circumstances. 

The exemption is for absentee corporations and trusts that: 

• are Australian-based 
• run a business in Victoria and whose commercial activities make a significant contribution to the Victorian economy and community by using local labour, materials and services 
• show good corporate behaviour. 

Before you apply for an exemption, refer to the Treasurer’s guidelines to work out if you’re eligible. 

For the 2019 land tax year onwards, refer to the Treasurer’s guidelines issued on 1 October 2018.

Step 1: Prepare your application

Your written application should address all the factors listed in the Treasurer’s guidelines.

Your application and supporting documents should include the following information:

• The land tax year you are applying for.
• Details of the absentee owner.
• Your customer number, which is on the front of your land tax assessment.
• A statement about the corporation or trust’s business activities and how those activities significantly contribute to the Victorian economy and community.
• How and how much the corporation or trust uses Victorian labour and materials.
• Documents detailing the ownership structure of the corporation or trust, such as:
  • Australian Securities and Investments Commission (ASIC) documents or other documents showing the shareholders (and ownership) of the corporation
  • a registry of beneficiaries or other documents detailing the identity of the beneficiaries and their entitlement to the assets of the trust.
• Documents showing any prior Foreign Investment Review Board (FIRB) approvals.
• Information about the corporation or trust’s Victorian turnover or other management records showing the extent of the Victorian business done by the corporation or trust for the 3 prior years.
• Evidence of the person(s) who ultimately control(s) the decision making, and the degree of their control over the company or details regarding the person(s) influence in the administration and conduct of the corporation or trust.
• Details of the absentee person who:
  • holds the controlling interest in the corporation, or 
  • is the absentee beneficiary who:
    • holds a beneficial interest in land subject to a fixed trust
    • holds a unitholding in a unit trust scheme, or
    • is a specified beneficiary of a discretionary trust.
• A structure diagram showing the links from the absentee person through to the owner of the land. For every entity in the structure diagram, please provide:
  • legal name (or name of the trust and trustee)
  • ACN (if applicable)
  • place of incorporation (if applicable)
  • percentage of shares/entitlement between the relevant entities.
• Any other information or documents supporting your statements about the Treasurer’s guidelines.

Step 2: Gather supporting documents

When lodging your written application, you must provide copies of any supporting documents.

Step 3: Lodge your application

Email

Email your application, including any attachments, to taxadvisory@sro.vic.gov.au.

Mail

Mail your application to:

Tax Advisory and Review Branch
State Revenue Office
GPO Box 1641
Melbourne VIC 3001

Next steps

We will consider your application and contact you if we need more information. We advise you of our decision in writing.