Vacant Residential Land Tax

Starting on January 1, 2025, VRLT will apply to all residential properties in Victoria if they are vacant for more than 6 months in the previous calendar year. This means if your property was empty for more than six months in 2024, you might have to pay VRLT in 2025.

A property is considered 'vacant' if it hasn't been used or occupied for more than 6 months continuously or in total.

Previously, VRLT only applied to certain Melbourne councils, but from January 1, 2025, it will apply to all residential properties across Victoria, including areas like Frankston and Mornington Peninsula.

The amount of VRLT depends on how many consecutive years the property has been liable:

•1% of the property's Capital Improved Value (CIV) for the first year.

•2% of the CIV for the second consecutive year.

•3% of the CIV for the third consecutive year and beyond.

For example, if your property's CIV is $1,000,000 and it becomes liable for VRLT in 2025, you would pay $10,000. If it remains vacant in 2025 you will pay $20,000 (2% of $1,000,000) in 2026.

Holiday homes continue to be exempt from VRLT if you use them for at least four weeks per year.

Simply listing a property on a short-term rental platform like Airbnb isn't enough to avoid VRLT. The property must actually be used and occupied for more than 6 months to be exempt.

If you let friends or family stay there occasionally, that doesn't count as usage unless it's their main residence or under a formal lease.

If you own residential property in Victoria, it's wise to consider these rules before they take effect in 2025. 

If you need help understanding or complying with these regulations, or with the conveyance of your residential property, please do not hesitate to contact Lardners Solicitors at (03) 9787 4511 or reception@lardners.au.