As part of the upcoming changes to the Vacant Residential Land Tax (VRLT) in Victoria, property owners must take note of new obligations and expanded tax rules. These changes may significantly impact property holdings, and it is crucial to ensure compliance to avoid penalties.
Key Changes to VRLT Rules:
- Notification Requirement by 15 January 2025
If you own a home in Victoria that was unoccupied for more than six months during 2024, you are required to notify the State Revenue Office (SRO) by 15 January 2025.- This notification is mandatory even if you believe your property qualifies for an exemption.
- Exemptions must be applied for via the SRO’s online notification portal.
- Expanded Scope of VRLT from 1 January 2025
From 1 January 2025, VRLT will apply to all Victorian homes that remain unoccupied for more than six months in a calendar year, unless an exemption applies.- Properties under construction, undergoing renovation, or deemed uninhabitable for more than two years will also be subject to VRLT.
- Exemptions
Certain properties may qualify for exemptions, including:- Holiday homes.
- Properties that changed ownership during the calendar year.
- Additional Tax Liability
VRLT may be payable in addition to standard land tax. The use of your property during 2024 will determine whether you are liable for VRLT in 2025. - Future Expansion in 2026
From 2026, VRLT will further expand to include certain unimproved vacant land located in designated metropolitan Council areas.
What This Means for You
These changes could have significant financial implications for property owners, particularly those with unoccupied or underutilised properties. It is essential to review your property portfolio and ensure compliance with the new rules.
Contact Hill Legal for Assistance
At Hill Legal, we understand the complexities of property tax obligations and can provide tailored advice to help you navigate these changes. Whether you need assistance with notifying the SRO, applying for exemptions, or understanding how these rules affect your property holdings, our experienced team is here to help.
Contact us today on 03 5976 6500 or visit our website to discuss your situation and ensure you are fully prepared for the upcoming changes.
