Vacant residential land tax (vrlt) information
What is Vacant Residential Land?
The State Revenue Office recognises “Residential Property” as including any of the following features:
Land with a home on it; or
Land with a home being renovated or where a former home has been demolished and a new home is being constructed; or
Land with a home on it which has been uninhabitable for 2 years or more.
Residential property does not include land which:
Does not have a home on it (sometimes referred to as unimproved land);
Is a commercial residential premises (e.g. hotel, premises used to provide accommodation in connection with a school, a caravan park/camping ground, etc.);
Is a residential care facility; or
Is a supported residential services or retirement villages.
A residential property is considered vacant residential land unless it was occupied for more than 6 months in the preceding calendar year by:
The owner, or the owners permitted occupant, as their principal place of residence; or
A person under a lease or short-term letting arrangement.
This 6 month period does not need to be continuous, it can be an aggregate period.
What is the timeframe which those properties must be declared?
From 1 January 2018 and 31 December 2024, a residential property will be subject to the vacant residential land tax if they were left unoccupied for more than 6 months in the preceding calendar year if they were located within certain municipalities.
From 1 January 2025 onwards, the scope of the vacant residential land tax is expanding to all residential properties in Victoria statewide. If you own residential property that has been vacant for more than 6 months in 2024, then you may be liable to pay the vacant residential land tax.
How and when do you report your affected property?
It is the responsibility of the owners to notify the Commissioner of the State Revenue Office if they own a residential property that has been vacant for more than 6 months in the preceding calendar year. Failure to notify the State Revenue Office on time may generally result in a penalty under the Taxation Administration Act 1997 (Vic).
For example, if a residential property has been vacant for more than 6 months in the 2024 land tax year, by 15 January 2025, the owner of that residential property must notify the State Revenue Office that their residential property was vacant and they then may be liable for vacant residential land tax.
The State Revenue Office states that affected landowners must notify using their online portal.
If you require further advice, please contact our office.