Prior to 1 January 2025, Victorian Residential Land Tax (VRLT) applied to vacant residential land in inner and middle Melbourne. However, from 1 January 2025, VRLT will be extended to now apply to residential land anywhere in Victoria that is vacant in the preceding year.

Vacant residential land is defined as property that has not been lived in for more than 6 months in the preceding calendar year. Land owners are required to notify the Commissioner of State Revenue of any vacant residential land owned by 15 January of the relevant land tax year.

Notably, this means that if you own residential land in Victoria that is vacant in 2024 then you may be liable for VRLT in 2025. Holiday homes are exempted from VRLT under certain circumstances and documentation, such as a logbook, may be required to demonstrate use of the holiday home.

Further information regarding VRLT can be found at: SRO – Vacant Residential Land.

Should you require any additional assistance regarding these changes to VRLT please contact our office.