What Is the Vacant Residential Land Tax?

The Vacant Residential Land Tax (VRLT) is a state tax introduced by the Victorian Government as part of its broader strategy to increase housing availability and improve affordability. It aims to discourage property owners from leaving residential properties vacant for extended periods, particularly in areas where housing demand is high.

Initially, the tax applied only to inner and middle Melbourne suburbs. As of 1 January 2025, significant changes have come into effect, expanding the tax's reach beyond inner and middle Melbourne to cover all residential land across Victoria (except for land in an alpine resort). This means that many more property owners may now be subject to the tax, including those who may not have previously needed to consider it.

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The Vacant Residential Land Tax (VRLT) is a state tax introduced by the Victorian Government as part of its broader strategy to increase housing availability and improve affordability. It aims to discourage property owners from leaving residential properties vacant for extended periods, particularly in areas where housing demand is high.

• Houses, apartments, townhouses, and units.
• Properties that are capable of being lived in (i.e. habitable) but remain unoccupied.
• Vacant land intended for residential development.

1. Holiday Homes
   Properties used as holiday homes by the owner or their relatives for at least four weeks per calendar year may be exempt, provided the owner has a principal place of residence in Australia.
2. Holiday Homes
   Properties used as holiday homes by the owner or their relatives for at least four weeks per calendar year may be exempt, provided the owner has a principal place of residence in Australia.