Skip to main content Skip to home page

 

Land that is exempt from land tax, such as your principal place of residence, is also exempt from the vacant residential land tax

In addition, specific exemptions from the vacant residential land tax may apply to your property.

Change of ownership

Properties that change ownership during a calendar year are exempt from the tax in the following year. 

For example, a property sold and transferred during 2020 is exempt for the 2021 tax year.

The change of ownership must actually occur during the calendar year. It is not enough that the property is available for sale or awaiting settlement at 31 December of the year before the tax year.

The property becomes residential land 

During the preceding calendar year

Land that becomes residential land during the calendar year is not subject to the tax in the following year. 

For example, a warehouse converted into residential apartments during 2020 is exempt for the 2021 calendar year. Similarly, where construction of a new home has just been completed, the property is exempt for the following tax year. 

During the two preceding calendar years, where ownership is unchanged

In 2022, a new exemption was introduced to allow land that becomes residential land during a calendar year to not be subject to the tax for up to two tax years.

This exemption will only apply where the land has not been used or occupied and the ownership of the land remains unchanged.

For example, a warehouse is converted into residential apartments during 2022. They remain unsold, and as such are exempt for the 2023 and 2024 calendar years.

Holiday home exemption

The holiday home exemption applies to a property used and occupied by the owner as their holiday home (a second home) for at least four weeks (whether continuous or aggregate) in a calendar year.  

To qualify for this exemption, the owner must also have a principal place of residence in Australia (not necessarily one that they own themselves, but one that they occupied as their home) in the relevant tax year.

The Commissioner of State Revenue must also be satisfied that the property was a genuine holiday home, having regard to its location and distance between the owner’s actual home and the holiday home, as well as the frequency and nature of its use.

An owner will only be able to claim one holiday home exemption in a calendar year.    

Properties owned by companies, associations or organisations are generally not eligible for this exemption.

Work accommodation exemption

This exemption applies to a property used and occupied by the owner for work purposes. 

The property must be occupied by the owner for at least 140 days (whether continuous or aggregate) in a calendar year for the purpose of attending their workplace or conducting business. To be eligible for the exemption, the workplace must be located in one of the specified local council areas and the owner must have a principal place of residence in Australia.

For example, John lives in Mildura with his family, but his job requires him to work three days a week in the city. John owns an apartment in Docklands which he uses while he is working in Melbourne. If John uses his apartment for more than 140 days for his work, the property is exempt from the vacant residential land tax in the following tax year. 

Properties owned by companies, associations or organisations are generally not eligible for this exemption.

Notify us

Use the online portal to notify us of vacant residential properties, claim exemptions and update your contact details. 

 

Last modified: 31 May 2022
Back to top