By Jack Nevile
It’s a busy time in property since the rate cuts. Residential prices are creeping back up, commercial vendors and purchasers are transacting again after a few quiet years, and people holding mortgages are breathing a collective sigh of relief as further cuts on the horizon look increasingly likely.
As the new Financial Year arrives, don’t forget that if your property has been empty since 1 January this year, and it isn’t exempt, you will be donating at least 1% of its value to the Department of Treasury, thanks to Vacant Residential Land Tax. If this is you, please contact us immediately to discuss possible options.
After ramping up land tax on investors, we’re running out of investors. Many are selling, with those homes are being bought by owner-occupiers, which is great news – more people are finally able to own the homes they live in. The bad news is that Treasury wants that revenue back and has found a solution.
The Fire Services Levy has been renamed to the Emergency Services and Volunteers Fund, and the Treasurer decided to double the cost for good measure. It is calculated on the Capital Improved Value of your property, and there is no owner-occupier exemption like land tax. This is a universal land tax in all but name, and is collected by Councils rather than the State Revenue Office, ensuring voter’s anger is directed at local councilors rather than state MPs. You’ll see the increase show up on your Council Rates bill next month.
The Premier wants renters off gas appliances, although backed down on banning gas stovetops for now. This means landlords will have to replace gas hot water systems when they reach end of life with electric alternatives, such as heat pumps. Gas heaters must be replaced with electric versions at their end of life as well. From 1 January 2027, all new homes must be entirely electric, including stovetops.
It isn’t just gas that has landlords sweating. From 1 March 2027, ceiling insulation must be installed on property lacking it before any new lease can be signed, as must draught sealing and a 4-star water efficiency showerhead. Currently, there’s only a requirement for living areas to have heating, but this will be expanded to heating and air conditioning to help tenants in the scorching summer heat.
If you’re looking at buying property, selling property, or anything in between, contact Jack Nevile at jack.nevile@nevile.com.au
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.
