The 1, 2, 3 of Property Law Reminders for NY2023
The start of a new calendar year brings with it new hope and opportunities for the year ahead. It also heralds the time for many to refresh and reset, to reflect and to set goals for the future.
In so reflecting, reflecting on one’s property matters (current or proposed for the future) is also a worthwhile exercise.
There are a number of property matters to be aware of flowing from the commencement of the new calendar year and some substantial changes which have come into effect or are due to come into effect during the year. Some are housekeeping or good practice, others bring changes to implement.
Whether you are a vendor or purchaser, landlord or tenant, or interested in becoming one or more of the aforementioned, it is important to read our summary below. Our summary is not intended to be exhaustive.
- Updating unsigned Vendor Statements
If applicable, any unsigned Vendor Statements issued pre-1 January 2023 should be updated to include the 2023 congestion levy notice of assessment. Vendor Statements should also be reviewed to identify any other changes required and to confirm that certificates annexed thereto remain current and accurate.
- Land Tax Assessments
Land Tax Assessments are generally sent to owners or their authorized representative between late January and late May each year. To formally object to or challenge your assessment, it must be lodged with supporting evidence within 60 days of receiving your assessment. If lodged after 60 days, you must provide reasons for the delay and the State Revenue Office (SRO) can refuse it.
- Congestion Levy
As of 1 January 2023, the congestion levy rates were increased to $1590 per parking space in a Category 1 levy area and $1130 per space in a Category 2 levy area. Levies are indexed annually on 1 January for CPI and based on the use of the spaces in the preceding calendar year.
Inner Melbourne car park operators or owners with parking spaces should review the levy area boundaries to ensure registration and ongoing compliance. Annual returns were also due for lodgment with the SRO by 21 January 2023.
- Absentee Owner Surcharge and Vacant Residential Land Tax
Owners were required to notify the SRO by 15 January 2023 via the SRO’s website if the Absentee Owner Surcharge and/or Vacant Residential Land Tax applied to properties they own. If you are unsure if either may apply to your property, seek advice. A late notification is not ideal, but it is better than no notification.
- Retail Leases
On 1 December 2022 the Retail Leases Amendment Regulations 2022 (Vic) came into effect. The Regulations require minor new wording to be inserted into Disclosure Statements, which must be done to ensure compliance with the Retail Leases Act 2003. The new Disclosure Statements should be used for all retail leases moving forward.
- Windfall Gains Tax (WGT)
The Windfall Gains Tax is scheduled to commence on 1 July 2023. It applies to land that is subject to a government rezoning resulting in a value uplift to the land of more than $100,000.
WGT has the potential to significantly impact transactions that involve rezoning or potential rezoning of land entered into now and post-1 July 2023. The practical application, and enforcement, of WGT will unfold over time.
If you have any questions in relation to the above, please contact Nafsika Starvaggi or a member of our Property Law Team.
