Changes to Victoria’s vacant residential land tax (VRLT)

The State Taxation Acts and Other Acts Amend Act 2023 introduces several changes to Victoria’s vacant residential land tax (VRLT), including:

1.       Expanding vacant residential land tax (VRLT) to all vacant residential land in Victoria from 1 January 2025, subject to applicable exemptions

2.       Applying a new progressive rate of VRLT from the 2025 tax year to non-exempt vacant residential land based on the number of tax years the land has been liable for VRLT, that is 1% of the capital improved value of the land for the first year the land is liable for VRLT, 2% for a second consecutive year, 3% for a third consecutive year

3.       Expanding the definition of vacant residential land from the 2026 tax year to include unimproved residential land that has been unimproved for 5 years or more in established areas of metropolitan Melbourne, subject to exemptions