Victoria Vacant Residential Land Tax
Check an estimated VRLT amount using the property’s capital improved value and its recent vacancy history in Victoria.
Check How Vacancy May Affect Your Property
Property use, vacancy duration and capital improved value all play a role in determining potential VRLT exposure.
- Calculate using the property's relevant capital improved valu
- Consider how consecutive years of liability may affect the applicable rate.
- Review whether an exemption could apply to your circumstances.
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Vacant Residential Land Tax FAQs
Vacant residential land tax has specific occupation, exemption and notification rules, so understanding the inputs can prevent misleading estimates later.
What is vacant residential land tax?
Vacant residential land tax, or VRLT, is an annual Victorian tax that can apply to residential land left vacant. From the 2025 land tax year, it applies across Victoria rather than only selected Melbourne council areas.
When is a home considered vacant for VRLT?
An existing home can generally be liable where it was vacant for more than six months in the previous calendar year, subject to the detailed occupation tests and available exemptions.
What value is used to calculate VRLT?
VRLT is based on the property’s capital improved value, which includes the land, buildings and other capital improvements. This is different from ordinary land tax, which is generally based on site value.
What rates can apply?
For most liable land, the rate is 1% of capital improved value for the first consecutive year, 2% for the second and 3% for the third or later consecutive year. Special 1% rules apply to certain undeveloped or new unsold residential land.
Are there VRLT exemptions?
Yes. Exemptions can apply in specific circumstances, including some principal residence, work-related, holiday home and ownership situations. The conditions are detailed, so an exemption should be confirmed rather than assumed.
Do owners need to notify the State Revenue Office?
Owners of vacant residential land may have a notification obligation even where they believe an exemption applies. The State Revenue Office currently states that relevant notifications are generally due by 15 February.
Own a Property That Has Been Vacant?
Talk with our team about the conveyancing and property considerations surrounding your Victorian residential land or transaction.