Vacant Residential Land Tax effective 1 January 2025

On 1 January 2025 Vacant Residential Land Tax (VRLT) will apply to non-exempt residential land in Victoria. VRLT is an annual tax in addition to Land Tax that applies to residential land that is unoccupied for more than six months in the preceding calendar year, whether continuously or in aggregate.

Vacant residential land tax (VRLT) may apply if you own:

• Residential land with an existing home on it that was vacant for more than six months in 2024;
• Residential land with a home on it that has been under construction or renovation for two years or more;
• Residential land with a home on it that has been uninhabitable for two years or more.

Residential land does not include land without a home on it (sometimes called unimproved land), commercial residential premises, residential care facilities, supported residential services or retirement villages. From 1 January 2025, it also does not include land in alpine resorts.

If you are a property owner and think this may apply to you, you need to notify the State Revenue Office (SRO) by 15 January 2025. Certain properties may be eligible for an exemption which can be applied for via the SRO online portal.

 For further information please visit https://www.sro.vic.gov.au/vacant-residential-land-tax/making-vacant-residential-land-tax-notification
If you have any questions please speak to your advisor.