How is vacant residential land tax changing from 1 January 2026?

Description

This video gives you an overview of the changes to vacant residential land tax (VRLT) taking effect on 1 January 2026.

Transcript

From the 1st of January 2026, vacant residential land tax, or VRLT, is changing.

Residential land in metropolitan Melbourne that has remained undeveloped for at least 5 years may attract VRLT from the 1st of January 2026 onwards.

This means residential land capable of development cannot remain undeveloped without attracting VRLT.

Land that cannot be used or developed for residential purposes, or land that is contiguous to the owner's principal place of residence or holiday home, is exempt.

From the 1st of January 2026, VRLT may also apply to residential land outside inner and middle Melbourne with a residence that has been uninhabitable or under construction or renovation for more than 2 years.

This means if you own residential land anywhere in Victoria that has been uninhabitable or under construction or renovation since the 31st of December 2023 or earlier, you may need to pay VRLT in 2026.

Remember, if you own residential land that was vacant for 6 months or more in the previous calendar year, you must notify us by the 15th of January.

To learn more about how VRLT is changing from the 1st of January 2026, including the boundaries of metropolitan Melbourne and inner and middle Melbourne, visit our website: sro.vic.gov.au/vacant.