do you own vacant residential land? this could now be subject to vacant residential land tax!

Have you owned vacant land for 5 years that has not been developed? Changes to Vacant Residential Land Tax could affect you!

What is Vacant Residential Land Tax?

Vacant Residential Land Tax is a tax on residential properties that are vacant for more than 6 months of the year. This is in addition to Land Tax. Vacant Residential Land Tax came into effect for vacant properties in the whole of Victoria, on 1 January 2025.

From 1 January 2026, the Vacant Residential Land Tax is now expanding to include vacant residential land in Melbourne Metropolitan areas, that have not been developed in the preceding 5 years, that is capable of residential development.

That means if you have owned vacant land in the Melbourne Metropolitan area since 2020, that has not been developed, that property is now subject to Vacant Residential Land Tax. There are limited exemptions.

The tax is 1% of the Capital Improved Value of the property.

What do you need to do?

If you have owned vacant land since 2020 in the Melbourne Metropolitan area that has not been developed, you will now be required to head to the State Revenue Office website and register for the online portal. Once registered you will be prompted to enter your details and the details of any properties held that are subject to the Vacant Residential Land Tax.

There are some exemptions, however you must STILL lodge your report via the online portal, however you can claim the exemption at the same time.

Reporting must be done by 15 February 2026!

Ensure you do not miss the deadline!

The onus to report any properties is on the property owner! The State Revenue Office will not automatically send you a bill like they do with standard land tax.

If you fail to report your properties by 15 February 2026, you can face penalties under the Taxation Administration Act 1997.

If you require assistance or would like advice on exemptions and how they apply, contact our office today!