Vacant Residential Property Land Tax
OHM Chartered Accountants
Chartered accounting firm in Melbourne specialising in tax and business advisory services for the SME market
Who is Affected?
If you own a property that is not your primary residence, not genuinely leased or does not already have an exemption (e.g. primary production), this applies to you. In the 2024 calendar year only properties in inner Melbourne suburbs are affected but from 1st January 2025 it will include all properties in Victoria. The tax will also apply to homes under construction, and those that are under renovation or uninhabitable, for more than 2 years.
What Do I Need to Do?
You need to lodge a vacant residential land tax (VRLT) notification by 15th January 2025. This can be done through the SRO’s online notification portal here.
Are Holiday Homes Included?
Yes, holiday homes are included. However, if you stay in your holiday home for at least 4 weeks in the year, you may get an exemption. You can apply for this exemption online when you notify the SRO.
If I do not qualify for the exemption how much is the additional tax?
The VRLT rate depends on how many consecutive years your property has been vacant: ???? 1% of the Capital Improved Value (CIV) property value for the first year ???? 2% of the CIV property value for the second consecutive year ???? 3% of the CIV property value for the third consecutive year.
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