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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By Wendy Chamberlain
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With a passion for all things real estate spanning 20 years, Wendy loves that her role as a Buyers and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.