Who is an absentee owner under the SRO Vic rules?

An absentee owner is generally a foreign natural person, a foreign corporation or a foreign trust that does not ordinarily reside in Australia. Specifically, an absentee individual is someone who is not an Australian citizen, not an Australian permanent resident, and was either absent from Australia on 31 December of the year preceding the assessment year, or absent from Australia for more than 6 months in the calendar year preceding the assessment year. Australian citizens are not absentee owners regardless of where they live. New Zealand citizens holding a Subclass 444 special category visa are also generally not absentee owners.

How is the 4% absentee surcharge applied with no threshold?

Unlike general land tax (which only applies above a $50,000 threshold), the absentee owner surcharge applies to the full taxable value of your Victorian land from the first dollar. The rate is a flat 4% on the aggregated taxable value of all your VIC land at 31 December. So a $500,000 holding attracts a $20,000 absentee surcharge regardless of whether general land tax is also payable. The surcharge is in addition to general land tax and any other land tax surcharges that apply.

How does the 31 December residency test work?

The State Revenue Office Victoria assesses your absentee status as at midnight on 31 December immediately preceding the assessment year. For the 2025-26 land tax year, the test date is 31 December 2025. If you are not an Australian citizen or permanent resident and you are absent from Australia on that date (or you have been absent for more than 6 months during the 2025 calendar year), you are generally classified as an absentee owner for the 2026 assessment. You can apply to the Treasurer for an exemption in limited circumstances such as overseas employment for an Australian employer, but the discretion is exercised narrowly.

Are NZ citizens treated as absentee owners?

New Zealand citizens holding a Subclass 444 special category visa are generally not classified as absentee owners by the SRO Victoria, even if they are physically absent from Australia on 31 December. This special concession recognises NZ citizens' long-standing right to live and work in Australia under the Trans-Tasman Travel Arrangement. NZ citizens who do not hold a Subclass 444 visa, or who have moved to Australia and then renounced their visa status, may be assessed as absentee owners. Confirm your status with the SRO before lodging.

VIC Absentee Owner Surcharge Calculator 2025-26

What this calculator works out

This calculator estimates the Victorian Absentee Owner Surcharge on your VIC taxable land for the 2025-26 assessment year, optionally combined with general land tax and the COVID Debt Repayment surcharge for the full annual liability.

It applies to:

Foreign individuals not ordinarily resident in Australia (with the 31 December test).
Foreign corporations.
Foreign trusts.

It does not apply to Australian citizens, Australian permanent residents, or NZ citizens holding a Subclass 444 special category visa.

Numbers come from the SRO Vic absentee owner overview and the understanding absentee owner page. This is a general estimate, not a substitute for your formal Notice of Assessment.

The formula and where the rates come from

Absentee owner surcharge:

absentee surcharge = 4% × aggregated VIC taxable land value at 31 December

There is no $50,000 threshold for the surcharge — it applies from the first dollar.

General land tax (SRO Vic 2025-26, used for the combined view):

Taxable value	Tax
$0 – $49,999	nil
$50,000 – $99,999	0.20% × (value − $50,000)
$100,000 – $299,999	$100 + 0.20% × (value − $100,000)
$300,000 – $599,999	$475 + 0.40% × (value − $300,000)
$600,000 – $999,999	$1,675 + 0.65% × (value − $600,000)
$1,000,000 – $1,799,999	$4,275 + 0.95% × (value − $1,000,000)
$1,800,000 – $2,999,999	$11,875 + 1.45% × (value − $1,800,000)
$3,000,000 – $4,999,999	$29,275 + 2.55% × (value − $3,000,000)
$5,000,000+	$80,275 + 2.65% × (value − $5,000,000)

COVID Debt Repayment (assessment years 2024-2033):

$50,000 to $100,000      flat $500
$100,000 to $300,000     flat $975
$300,000+                $975 + 0.10% × (value − $300,000)

Combined liability:

total = general land tax + COVID Debt Repayment + absentee surcharge

How to read the inputs

Aggregated VIC taxable land value at 31 December — total site value of all your Victorian land at midnight on 31 December immediately preceding the assessment year. Exclude exempt principal place of residence and primary production land.
Absentee owner toggle — tick if you, the company, or the trust is an absentee owner under the SRO Vic test. The 4% surcharge applies on top of any other land tax.
Show general land tax toggle — tick to add general land tax and the COVID Debt Repayment to the surcharge for a combined view.

Worked examples

1. Australian citizen with $1,000,000 of VIC investor land. Not an absentee owner → surcharge = $0. General land tax = $4,275. COVID Debt = $975 + 0.10% × $700,000 = $1,675. Total = $5,950.

2. Foreign owner with the same $1,000,000 holding. Surcharge = 4% × $1,000,000 = $40,000. General land tax = $4,275. COVID Debt = $1,675. Total = $45,950.

3. Foreign owner with a small $100,000 vacant block. No general land tax (just at the band-2 floor with $0 marginal). General COVID Debt = $975. Surcharge = 4% × $100,000 = $4,000. Total = $4,975.

4. Foreign trust with $5,000,000 of VIC commercial land. General land tax (general scale) = $80,275. COVID Debt = $975 + 0.10% × $4.7m = $5,675. Surcharge = 4% × $5m = $200,000. Total = $285,950. Foreign trusts incur the surcharge regardless of beneficiary residency, unless beneficiaries are nominated and ATO-approved.

5. NZ citizen on Subclass 444 visa with $700,000 of VIC investor land. Not an absentee owner → surcharge = $0. General land tax = $1,675 + 0.65% × $100,000 = $2,325. COVID Debt = $975 + $400 = $1,375. Total = $3,700.

6. Foreign owner with $40,000 vacant block. Below general land tax threshold → general = $0, COVID = $0. Surcharge = 4% × $40,000 = $1,600. The surcharge applies even though no general land tax is payable.

Common pitfalls

Assuming the surcharge has a threshold. Unlike general land tax, the absentee surcharge applies from the first dollar of taxable value. A $20,000 vacant lot still attracts an $800 surcharge.
Misreading the 31 December test. The test date is 31 December immediately preceding the assessment year, not the start of the financial year. Travel plans around 31 December can change your status for an entire year.
Forgetting NZ citizens are usually exempt. Subclass 444 visa holders are typically not absentee owners. Verify the visa class with the Department of Home Affairs.
Trust beneficiary nomination. A foreign trust can apply to nominate Australian beneficiaries to avoid the absentee classification, but the SRO must accept the nomination. Default-status discretionary trusts are commonly classified as foreign even when only one beneficiary is foreign.
Joint ownership. Each joint owner is separately assessed. If one joint owner is absentee, the surcharge applies only to their proportionate share — but joint assessments may also apply at the joint-owner level depending on structure.
Building work permanent residency. Permanent residents who travel for extended overseas work need to ensure they remain "ordinarily resident" — extended absences (typically more than 6 months) can trigger absentee status even for a permanent resident.
Confusing absentee surcharge with foreign purchaser duty. The absentee surcharge is an annual land tax surcharge. The foreign purchaser duty surcharge is a one-off duty payable on purchase. Both can apply to the same property.
PPR exemption. The principal place of residence exemption may not be available to absentees who do not ordinarily reside in the property. Check the PPR exemption criteria carefully if claiming.

Related calculators

Land Tax Calculator VIC — base general land tax calculation including PPR.
Vacant Residential Land Tax Calculator VIC — separate vacant residential land tax (1% / 2% / 3% by year of vacancy).
Foreign Purchaser Surcharge Calculator VIC — one-off purchase-time foreign purchaser duty.
Stamp Duty Calculator VIC — base transfer duty including off-the-plan and PPR concessions.
Land Tax Calculator NSW — equivalent calculation for the NSW land tax surcharge regime.

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