Are you using the VCAT Residential Tenancies Hub?

OUR INFORMATION TEAM SPEAK WITH MANY MEMBERS EACH WEEK AND HAVE NOTED THAT SOME PROPERTY MANAGEMENT OFFICES ARE NOT USING THE VCAT RESIDENTIAL TENANCIES HUB.

We encourage all property management offices (big or small) to register for this free service and enjoy the benefits it presents to property managers.

Once registered, subscribers can perform the following functions:

• Create notices: Create notices such as vacate notices, breach notices, notice of entry, and rent increase notices. The Notice will be generated for you to download as a pdf document. Print, sign and serve on the respondent accordingly.

• Lodge an application: Create and lodge an application for a tribunal hearing. If the application is based on a previously created notice, you simply need to enter the notice number to retrieve the details already entered. The completed application form will be generated for you to print and serve in the normal manner (there is no need to send a paper copy to VCAT). When possible, the system will set the hearing venue, date and time and inform you immediately of these details via the portal.

• Automatically pay for relevant fees: Once your account is set up any relevant fees for your applications to VCAT can be automatically charged and paid at the time of lodging your application. Warrants of Possession can also be paid for in this manner.

• Search previous matters: Search facility enables you to view and print a previously created notice or application, related hearing notices and any Orders that have been made.

• Create request to principal registrar: Renew proceedings on a previous hearing that might have been adjourned, purchase a warrant of possession following VCAT Orders, seek an extension on a warrant of possession, and withdraw an application that had previously been made using the Hub.

The Hub can help improve accuracy and efficiency by serving the appropriate notices that align correctly with the Residential Tenancies Act. In addition, you will also be confident of honouring the correct number of days for relevant notice periods.

Reiv Information Officers

Jim Lourandos

A name well-known to REIV Members as one of the most knowledgeable, helpful and respected names in real estate, Jim Lourandos has been assisting Members for over 22 years at the REIV. Jim joined the REIV in 2001 following extensive experience working in Melbourne’s northern suburbs as a licensed real estate agent.

As the REIV Technical Services and Compliance Officer, prior to a recent change in title to Information Officer, Jim has been supporting Members on matters relating to real estate and property law.

Wearing multiple hats, Jim is also a qualified REIV Trainer, teaching students completing a real estate qualification or upskilling on matters such as risk management, documentation and business sales. Jim regularly visits real estate agencies and provides in-house training to Members on matters relating to legislation and compliance.

Chris Snell

The REIV welcomed Chris Snell to the team in early 2023 in the Information Services team. Chris has become an integral part of the Member Services team supporting Members on a range of real estate queries.

Chris began his career in the real estate industry in 1992. Chris has enjoyed a broad experience of agency work including the operation of his own business in Melbourne for eight years. With expertise and hands-on experience in residential sales and leasing, property management, marketing property, business and risk management, and staff management, Chris is well equipped to assist Members.

If you haven’t already spoken to Chris, you will find that he is most happy to help with any questions you may have.

Windfall Gains Tax

The Windfall Gains Tax in Victoria commenced on 1 July, 2023. While it is not the place of any real estate agent to be providing advice to property owners about any tax liabilities, it is important for real estate professionals to understand these matters.

For more information, log in to access the Information Sheet via the link below.

View information sheet

The Windfall Gains Tax is a Victorian state tax on increases in property land value following a zoning amendment. A property owner may encounter an uplift in value, a windfall gain, after a rezoning takes effect. The tax is to be calculated on the Capital Improved Value (CIV) basis before and after a rezoning.

The dollar value of the property before and after the rezoning as determined by the Valuer-General creates a “windfall” where the land increases in value because of the rezoning. A windfall gains tax shall apply when an uplift in value exceeds $100,000. Property owners that are affected will receive a Windfall Gains Tax Assessment Notice from the State Revenue Office of Victoria.

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Land Tax And The Covid Debt Levy Repayment Plan

The Victorian Government’s Covid Debt Repayment Plan to raise additional tax revenue includes a new surcharge and an increase in the land tax rates every year for the next 10 years, commencing in 2024 and expiring in 2033. At the conclusion of the 10-year period on 30 June 2033, these changes are expected to be reversed. State Government forward estimates suggest additional revenue of $4.7 billion will be raised.

Current land tax exemptions such as the principal place of residence will continue to be exempt from land tax. The additional surcharge and increase in land tax rates is far reaching and includes a temporary decrease in the land value tax free threshold to $50,000 (previously $300,000). Additional varying fixed charges (surcharges) and an increase in the percentage tax rate will also apply to many property owners. Many Members will find that their Residential Rental Providers will be directly impacted by these additional taxes.

Furthermore, the absentee owner surcharge is an additional amount payable over the general and trust surcharge rates of land tax. Since the 2020 land tax year, a 2 per cent absentee owner surcharge on land tax applies. Effective in the 2024 land tax year that rate will increase to 4 per cent AND; the tax free threshold will reduce from $300,000 to $50,000. Many Members will find that their residential rental providers living abroad will be directly impacted by these changes and possibly for the first time.