Do you own residential land in Victoria that was vacant in 2024? Notify the SRO by end of today

If your residential property was vacant in 2024 calendar year in Victoria, you may be subject to vacant residential land tax. What’s more, if you have yet to notify the State Revenue Office, you must by 15 January, otherwise you may be subject to penalty taxes. 

If you have already made a notification, you only need to make a new one if your circumstances have changed. 

What is the VRLT? 

The Victorian Government implemented the Vacant Residential Land Tax (VRLT) on 1 January 2018 to address housing supply shortages in the state. The tax is assessed annually based on the calendar year (1 January to 31 December), and property owners are responsible for payment. 

What has changed from 1 January 2025? 

Prior to 1 January 2025, VRLT applied only to vacant residential land in inner and middle Melbourne.  

From 1 January 2025, VRLT applies to residential land anywhere in Victoria if the land is vacant in the preceding calendar year. This means that if you own residential land anywhere in Victoria that was vacant in 2024, you may be liable for VRLT in 2025.  

How much is VRLT? 

According to the SRO, from 1 January 2025, a progressive rate of VRLT applies to non-exempt vacant residential land across all of Victoria. VRLT is calculated on the capital improved value (CIV) of taxable land.  

The rate of VRLT is based on the number of consecutive tax years the land has been liable for VRLT and is: 

–  1% of the CIV of the land for the first year the land is liable for VRLT where the land was not liable for VRLT in the preceding tax year 

–  2% of the CIV of the land where the land is liable for VRLT for a second consecutive year 

–  3% of the CIV of the land where the land is liable for VRLT for a third consecutive year. 

Do you need to make a notification? 

You must notify the State Revenue Office by 15 January 2025 if you own: 

–  residential land in Victoria with a home on it that was capable of being used for residential purposes but was unoccupied for more than 6 months in 2024 

–  residential land in inner and middle Melbourne with a residence that was under construction or renovation, or that was uninhabitable, for 2 years or more as at 31 December 2024.  

Owners of vacant residential land that qualifies for an exemption can claim it after notifying the State Revenue Office through the online portal. 

Learn more about the Victorian Residential Land Tax here and more information about making a vacant residential land tax notification here 

Make a notification via their portal now: Vacant Residential Land Tax | State Revenue Office Victoria 

Source: State Revenue Office

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