Victorian Vacant Residential Land Tax 2025: Key Changes and Deadlines
From January 1, 2025, Victoria’s Vacant Residential Land Tax (VRLT) expands statewide. Any residential land left unoccupied for more than six months during 2024 will be subject to VRLT, not just properties in inner or middle Melbourne.
Key Dates & Notification Requirements
- December 31, 2024: Ownership snapshot date. Properties held at midnight determine your 2025 VRLT liability.
- January 15, 2025: Final day to advise the State Revenue Office (SRO) if your land was vacant in 2024 or to apply for an exemption. Common exemptions include:
- Holiday homes you (or a close family member) occupied for at least 28 days (with an Australian principal residence).
- Properties under construction or renovation (up to two years).
- Land already exempt from land tax (e.g., primary production land).
VRLT Rates by Vacancy Period
The tax is calculated on a property’s Capital Improved Value (CIV):
- Year 1 vacancy: 1% of CIV
- Year 2 vacancy: 2% of CIV
- Year 3+ vacancy: 3% of CIV
For example, a $1,000,000 property vacant throughout 2024 would incur a $10,000 VRLT in 2025.
Further Expansion in 2026
Beginning January 1, 2026, unimproved residential land in metropolitan Melbourne that remains undeveloped for five or more years will also attract a 1% VRLT.
Action Steps for Landowners
- Audit the 2024 occupancy status of all residential properties you own.
- Gather supporting evidence for any exemption claims (utility bills, booking records, building contracts).
- Submit your vacancy notification or exemption application via the SRO Vacant Portal by January 15, 2025: sro.vic.gov.au/vacantportal.
Non-compliance can trigger penalties from 5% to 90% of the assessed VRLT. Early preparation will help you avoid unexpected costs.
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