The amended Vacant Residential Land Tax comes into effect on the 1st January 2025. If your property has been vacant during 2024 for more than six months, you could be hit with a VRLT in 2025.
Currently, the VRLT applies to vacant homes in Melbourne’s inner and middle suburbs, but from January 1st 2025 it will apply across the state, to all Victorian properties.
There are some residential properties that are exempt however, such as:
- Your principal place of residence
- Homes undergoing a change of ownership
- Properties that become residential land
- Holiday homes
- Work accommodation
If you think any of those exemptions apply to you, you should click here to read the detailed criteria that applies in each case.
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.
You can familiarise yourself with all the details of the Vacant Residential Land Tax as reported by the State Revenue Office by clicking here.
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