Vacant Residential Land Tax

Definition

The Vacant Residential Land Tax is a Victorian state tax applied to residential properties left unoccupied for more than six months in the preceding calendar year. From 1 January 2025, VRLT applies statewide (previously inner/middle Melbourne only). The rate is 1% of Capital Improved Value (CIV) in year one, escalating to 2% and 3% for consecutive vacant years.

Every Victorian residential landowner must notify the State Revenue Office by 15 February each year — even if they qualify for an exemption. Missing this deadline means the SRO assumes your property is vacant and assesses the tax. On a property with a CIV of $800,000, that's $8,000 in year one.

Your holiday home in Lorne was unoccupied for 8 months last year. You forgot to notify the SRO by 15 February. The SRO issues a VRLT assessment of $6,500 (1% of $650,000 CIV). If it remains vacant next year, the rate jumps to 2%.

Land Tax Act 2005 (Vic), Part 4A

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