Land Tax and Absences from PPOR in VIC The laws for absence from the main residence significantly differ between state to state (Stte based legislation) and they are totally different to the income tax laws. This is a summary of the situation in Victoria. Legislation See s56 Land Tax Act 2005 (VIC) http://www5.austlii.edu.au/au/legis/vic/consol_act/lta200590/s56.html A former PPOR can be exempt from land tax in VIC under limited circumstances. For the exemption to apply the absence Must be temporary in nature And the owner must intend to resume occupying the property as the PPOR in the future. No other property be PPOR land tax exemption is claimed anywhere else, including overseas Further conditions Immediately before the absence it was able to be classified as the PPOR and exempt from land tax under s 54, OR was occupied as the main residence for at least 6 months prior to being absent AND the owner has not rented out the land for a period which is 6 months or more, or for periods which total 6 months or more, in the year preceding the tax year Example If you owner a property as your main residence, currently get the land tax exemption on this property and it you later move out to rent yourself and rent this property then this property may be exempt from land tax if you rent it for half the tax year. if you rent it for more than 6 months then the exemption will be lost.