To maximise their housing assets, the Victorian Government introduced an annual tax of 1 per cent of the capital improved value of taxable land tax on vacant residential properties unoccup9ied for more than six months a year across inner and middle Melbourne. The focus of the tax is not about revenue raising but about asset utilisation.
The introduction of any new tax needs to consider the broader implications for a functioning housing market. Through consultation, the costs and benefits of a vacancy tax was raised in the context of different housing markets across Western Australia. Shelter WA will maintain a watching brief and how this type of tax could be an appropriate policy response.