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Vacant Residential Land Tax

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The Victorian Government introduced Vacant Residential Land Tax (VRLT) from 1 January 2018 to help address the lack of housing supply in Victoria.

Starting January 1, 2025, the Victorian Vacant Residential Land Tax (VRLT) will be expanded and will apply to all residential land left unoccupied for more than 6 months the preceding calendar year statewide, not just to inner and middle Melbourne.

The Victorian Vacant Residential Land Tax will also apply to properties that are undergoing construction, renovation, or are otherwise uninhabitable for a period exceeding two years.

Exemptions may apply depending on specific circumstances such as:

  • Properties that change ownership during a calendar year are exempt from VRLT in the following year. 

  • Land that becomes residential land during a calendar year.

  • A property used and occupied by the owner which the land is subject as their holiday home for at least 4 weeks (whether continuous or aggregate) in a calendar year. To qualify for this exemption, the owner must also have a principal place of residence (home) in Australia in addition to their holiday home.

However, an exemption from VRLT does not mean that your land is exempt from land tax.  

As VRLT for any year is assessed on the previous year’s occupation of the property, you must notify the State Revenue Office by 15 January 2025 if you own a residential home that was unoccupied for more than 6 months in 2024.

If you're concerned about whether your property may be subject to this tax, it’s important to assess its occupancy for 2024 and consider if any exemptions apply to your situation

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