Proposed Empty Homes Levy in Randwick

Randwick City Council is considering an empty homes levy on properties left vacant for over a year in response to the local housing shortage. This proposal, intended to encourage owners to rent or sell idle properties, could provide essential housing near key areas, such as hospitals and universities. Significantly, the levy could generate funds for social housing projects, addressing both the immediate need for affordable housing and the city’s long-term housing goals. To move forward, the proposal requires state approval to amend the Local Government Act.

Similar policies are already in place in Victoria and Queensland. Victoria’s "Vacant Residential Land Tax" (VRLT), effective since 2018 and expanding statewide by January 2025, imposes a 1% tax on the capital-improved value of residential properties that remain vacant for over six months annually. Exemptions exist for holiday homes, where owners must meet specific occupancy requirements. Meanwhile, Queensland introduced its Empty Homes Levy in July 2023, charging a 5% tax on the taxable value of vacant residential land if left unoccupied for six months within a financial year, also aiming to increase available housing​.

The community has mixed reactions. Supporters view the levy as a way to reduce property speculation and create a more accessible housing market. Critics, however, feel that building more homes and enhancing infrastructure might be more sustainable solutions. 

MCA Buyer's Agency is closely following these developments, recognising the potential impact on property investment and market availability. Whether you’re an investor or a prospective homeowner, understanding these policy shifts is crucial for making informed decisions. As initiatives like this shape the future of the Randwick property market, staying ahead of these changes will be key for anyone involved in the area’s real estate landscape.