30/05/2025
๐ ๐ฅ๐๐ป๐ป๐ถ๐ป๐ด ๐ฎ ๐๐๐๐ถ๐ป๐ฒ๐๐ ๐ณ๐ฟ๐ผ๐บ ๐๐ผ๐บ๐ฒ ๐ถ๐ป ๐ฉ๐ถ๐ฐ๐๐ผ๐ฟ๐ถ๐ฎ? ๐ฌ๐ผ๐ ๐๐ผ๐๐น๐ฑ ๐๐ฒ ๐ฆ๐๐ฏ๐ท๐ฒ๐ฐ๐ ๐๐ผ ๐๐ฎ๐ป๐ฑ ๐ง๐ฎ๐
The State Revenue Office (SRO) of Victoria is increasing audits on homeowners operating home-based businesses.
๐ As of 2024, the land tax threshold has dropped from $300,000 to $50,000, meaning more properties may now fall within the taxable rangeโeven if only a portion is used for business.
๐ Key factors that may trigger land tax on your Principal Place of Residence (PPR):
-Business generates $30,000+ gross income
-30% or more of the property is used for business
-Employees or contractors (non-household members) work on-site
-Council permits apply to the business
-Significant business-related tax deductions are claimed
๐ The SRO may cross-reference your records with ATO data, Single Touch Payroll, and other systems to identify home-based businesses.
๐ Land tax is calculated based on land value as of December 31 of the previous year.
๐ Note: Land tax does not apply to primary production land, so sole trader farmers remain exempt under the farmland exemption.
It is the responsibility of the tax payer to notify the SRO of your setup. If you believe this ruling may apply to you, get in touch with our team to understand your reporting obligations and options.
