Land tax evasion audit of Victorian holiday home owners expected to secure $90 million
Victorian property owners falsely claiming to live in their holiday homes to avoid land tax bills could get caught by a state government audit.
About 27,000 home owners are expected to be contacted over a three-year period, the Treasurer Michael O'Brien told The Saturday Age ahead of Tuesday's state budget formal annoucement.
O'Brien wants a crackdown against tax dodging, with a new unit team within the State Revenue Office cross-checking information against rental tenancies and Tax Office figures.
The state collects about $1.6 billion a year in land tax.
The crackdown follows O'Brien's concerns that growing numbers of landlords are falsely claiming to live in investment properties and beach houses to avoid land tax.
The new squad, costing $10 million, is expected to net an extra $90 million over four years.
Mr O'Brien said it would improve revenues and equity. ''Every $1 of tax that is evaded is $1 more of tax that people who are doing the right thing have to pay,'' he told Fairfax Media.
Holiday home numbers can be roughly deduced at census time as coastal towns have significantly higher vacancy rates than the Victorian average which sits at around 12%.
In the 2011 census 11 of Australia's 20 highest vacancy rates were located in Victoria. High vacancy rates were recorded in Portsea-Sorrento-Blairgowrie at 76% and Lorne-Anglesea was at 68%.
In the 2006 census the average vacancy rate for Victorian coastal towns was 42%, with 24 towns having vacancy rates above 50%.
High vacancy rates in 2006 were in Smiths Beach and Venus Bay with rates around 82%, followed by Lorne at around 72%.