Do you have a residential property that has been vacant for more than 6 months this year? Have you or will you have used your holiday home for at least 4 weeks this calendar year?
How you use your property this year impacts whether you will be assessed for vacant residential land tax next year.
What is the VRLT?
The vacant residential land tax is a tax that will be charged on land that has been vacant for more than 6 months and does not satisfy any of the exemptions. The VRLT is calculated on the capital improved value (this is higher than the site value used for land tax) and the rates are 1% of the CIV for the first year, 2% for the second year and 3% for the third and subsequent years that a property is subject to the VRLT. The VRLT is charged in addition to land tax.
It is charged where residential land in Victoria has not been rented out on a bona fide basis for at least 183 days in the calendar year prior to the assessment and does not satisfy any of the exemptions (including the holiday home exemption).
Holiday home exemption
Holiday homes that have been used by you as a holiday home for at least 4 weeks in the calendar year will not be subject to VRLT. From the 2025 year the 4 week use and occupation requirement can be satisfied by relatives of the owner. Relatives includes a spouse or domestic partner, (grand) parents, (grand) children of owner/vested beneficiary or partner; brother, sister, niece or nephew of owner/vested beneficiary and their respective partners
Notification requirements
You need to notify the SRO of any vacant residential land by 15 January of the relevant land tax year. A notification for the purposes of the 2025 land tax year must be made by 15 January 2025 if land is ‘vacant’ in the 2024 calendar year.The notification is made via the online portal of the SRO. There are penalties for failure to lodge a notification in time.
You will also need to apply for exemptions (e.g. holiday home exemption) via the online portal by 15 January each year.
Contact Oakhill Lawyers for property advice.