What is vacant residential land tax?

Vacant residential land tax (VRLT) is a tax imposed on residential properties that are vacant for more than six months in a calendar year. It is assessed on the capital improved value of the property and applies at a progressive rate based on the number of consecutive years the property has been liable for VRLT.

When does VRLT apply?

From 1 January 2025, VRLT applies to residential land anywhere in Victoria, except for land in certain alpine resorts. Prior to this date, VRLT only applied to vacant residential land in inner and middle Melbourne.

Residential land with a home under construction or renovation for more than two years or that has been uninhabitable for two years or more is also considered vacant and subject to VRLT.

Are there any exemptions from VRLT?

There are some exemptions from VRLT, such as properties that are exempt from land tax.

How do I notify the State Revenue Office if I am liable for VRLT?

Property owners are required to notify the State Revenue Office if they believe their property is liable for VRLT. Failure to notify may result in penalties.

Where can I find more information about VRLT?

The State Revenue Office provides a vacant residential land tax calculator and other resources on their website.

In addition to the above, here are some other things to keep in mind about VRLT:

• The tax is calculated on the capital improved value of the property, which is the value of the land and any improvements on it, such as buildings and structures.
• The rate of the tax is based on the number of consecutive years the property has been liable for VRLT. The higher the number of years, the higher the rate of the tax.
• The tax is due on October 31 each year.
• Property owners can apply for a hardship exemption from VRLT if they are unable to sell or rent their property.