Insights Library
Holiday Home Owners Beware! Vacant Residential Land Tax Notifications due 15 January 2025
As we near the end of the year, many Victorians will be planning on visiting their favourite holiday spots and those fortunate enough, their holiday homes.
Starting on 1 January 2025, Vacant Residential Land Tax (VRLT) will apply to all vacant residential property across Victoria. This is a tax which is in addition to land tax on non-principal place of residence properties.
VRLT is levied on residential properties if they are left unoccupied for more than an aggregated period of six months in a calendar year. VRLT for any year is assessed on the previous years occupation meaning VRLT in 2025 is based on property vacancy in 2024. This annual tax is set at 1% of the Capital Improved Value (CIV) of taxable land.
Holiday homes may be subject to VRLT if vacant for more than an aggregate of six months in a year. However, exemptions commencing 1 January 2025 include:
- holiday homes used by owners or close relatives for at least 28 days in the preceding calendar year;
- holiday homes held by a company or trustee as at 28 November 2023 and used by specified beneficiaries for at least 28 days in the preceding calendar year.
To qualify for the holiday home exemption, the owner must also have a principal place of residence Australia in addition to their holiday home (if the property is held by joint owners, all owners must have a PPR in Australia).
Holiday home owners take note that you are required to notify the State Revenue Office by 15 January 2025 if you own residential land and it is vacant for more than 6 months in the preceding calendar year.
Once the initial notification in made, notification is future years is only required if circumstances for the property have changed. Failure to notify or providing incorrect information may result in penalties and interest being imposed.
More detail on how to make a vacant residential land tax notification and how to apply for an exemption can be accessed from below link:
Our Property Law team are available to help you navigate the notification requirements and the application of any exemption.
Please reach out to discuss any aspect if it may be relevant to your circumstances.
