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Understanding Vacancy Fee Obligations for Foreign Property Owners

Are you a property owner in Australia, particularly in the Inner West Sydney area? The Abanese government’s focus on foreign-owned properties might affect you. Labor suggests that rising property prices result from excessive foreign ownership and insufficient rental activity. Imagine receiving a letter from the government demanding an annual vacancy fee return of up to $300,000 for your property, with failure to pay potentially leading to the government selling your property to recoup the fees.

Mandated Vacancy Fee Return

To avoid the vacancy fee, occupants or renters must occupy the property for at least 183 days annually, maintaining continuous rental periods of at least 30 days. Furthermore, failure to comply with these regulations may subject individuals to penalties outlined by the Foreign Investment Review Board, including infringement notices, civil penalties, and potentially creating charges over Australian land.

Filing Requirements and Obligations

A vacancy fee return generally isn’t required for properties acquired before May 9, 2017, unless the foreign investment application certificate was obtained before May 2017. Jointly-owned properties have specific filing requirements depending on the type of ownership.

Avoiding Penalties

The property must be occupied or rented out for at least 183 days annually, with continuous rental periods of at least 30 days, to avoid the vacancy fee. Failure to comply with these regulations may result in penalties outlined by the Foreign Investment Review Board. These penalties include infringement notices, civil penalties, and the potential creation of charges over Australian land.

Expert Assistance Available

We can assist you with vacancy fee returns at EndureGo Tax, your trusted local accountant serving Inner West Sydney Ashfield and Northern Beaches Belrose. Whether you’re a real estate agent, conveyancer, or property owner, we’re here to help you navigate these regulations and ensure compliance. Don’t hesitate to contact us for assistance with your tax accounting needs.

vacancy fee return