Many Greek clubs in Melbourne own the land and building they occupy but are not aware that as a club they may qualify for a Concessional Tax Rate on the land tax (and may also be eligible for a refund on previous payments made.
“A concessional tax rate may apply where all or part of the land is owned and solely occupied by a club or association. The club or association must be carried on exclusively to provide for the social, cultural, recreational, literary or educational interests of its members, or for the promotion or control of horse, pony or harness racing in Victoria.
To satisfy this exemption, the club or association must not be carried on for the purposes of profit or gain of its individual members. If the concessional rate applies, the liability for land tax is limited to a maximum of 0.357 cents for every dollar of the taxable value of the land. In practice, this means that the concession applies only to land of a reasonably high value.
“To apply for this concession, please write to us requesting an exemption under section 73 with the following information: customer number; property address; what the property is used for; the date the use of the land commenced; a copy of the body’s Constitution or Memorandum; and Articles of Association; the Rules of Association and the objectives for which the body has been established; a copy of the body’s most recent financial statement including asset registers.”
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Please note, the Commissioner of State Revenue Victoria requires the above information/documentation for each land tax year you claim this provision.
The Victorian Government has prepared “Victorian Government Model rules for Associations” that is also available in Greek that the Victorian Government wants ALL clubs to adopt and use. These model rules include clauses that specifically say ” the club or association must not be carried on for the purposes of profit or gain of its individual members.”
Any Greek Club in Victoria wanting to apply for the Concessional Tax Rate on the land tax must have model rules for associations that comply with the Victorian Government model. If they do not comply, then the club can modify its own Model rules for Association or
adopt the “Victorian Government Model rules for Associations”
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It will be much easier and quicker for the Victorian government to confirm that a club does comply if that club adopts the “Victorian Government Model rules for Associations”.
Further details of the concessional tax rate for club land can be found at www.sro.vic.gov.au/ltxexemptions#concessional