Land Tax and Vacant Residential Land Tax

The State Revenue Office uses site value to assess land tax under the Land Tax Act 1958.  The site value of land returned at the 2024 general valuation, which will appear on council rate notices for 2024-2025 will be used for land tax in 2025.

Any objections against the 2024 general level of valuation must be made to the Valuer General Victoria within the time limits prescribed under the Valuation of Land Act 1960.  Further information on the use of valuation of land tax can be found on the State Revenue Office website

If you own a property that is not a principal place of residence, you may be liable for Land Tax. Furthermore, landowners of certain properties that are vacant for more than 6 months may also need to pay the Vacant Residential Land Tax (VRLT).

Land Tax

Land tax is an annual tax based on the total taxable value of all the land you own in Victoria, excluding exempt land such as your home (principal place of residence). It is calculated using the site values (determined by the Valuer-General Victoria) of all taxable land you owned as at midnight on 31 December of the year preceding the year of assessment. 

You may have to pay land tax if you own, either individually or jointly with others:

  • investment properties, including residential rental properties
  • commercial properties such as retail shops, office premises and factories
  • holiday homes
  • vacant land.

Land tax assessments are issued by the State Revenue Office (SRO) to the owner of the land between January and June each year. To learn more, visit Land tax | State Revenue Office (sro.vic.gov.au)

VRLT

Some landowners who pay Land Tax may also be liable for the VRLT, which applies to residential land that is vacant for more than 6 months in the preceding calendar year. For the purposes of VRLT, residential land includes:

  • land with a home on it
  • land with a home which is being renovated or where a former home has been demolished and a new home is being constructed
  • land with a home on it that has been uninhabitable for 2 years or more.

Residential land does not include commercial residential premises, residential care facilities, supported residential services or retirement villages.

Unimproved residential land (land without a home on it) in metropolitan Melbourne that has remained undeveloped for at least 5 years and is capable of residential development may attract VRLT from 1 January 2026 onwards.

VRLT is assessed by calendar year (1 January to 31 December) and the owner of the property is liable for it. However, VRLT for any year is assessed on the previous year’s occupation of the property. For example, VRLT in 2025 is based on a property’s vacancy in 2024 calendar year. 

You must notify the SRO by 15 January if you own residential land and it is vacant for more than 6 months in the preceding calendar year. 

To learn more including notifying the SRO, visit Vacant residential land tax | State Revenue Office (sro.vic.gov.au)

 

Visit the SRO’s customer education page to view education sessions coming up, book a speaker or email customer education direct at education@sro.vic.gov.au.   

Subscribe to SRO emails to receive updates.

 

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