The State Revenue Office have advised that a new tax will be implemented for residential properties that are vacant for more than 6 months in a year. This tax, known as ‘Vacant Residential Land Tax’, will come into effect on 1 January 2025 at a rate of 1% of the improved capital value of the property if the property has been vacant for 6 months during 2024.
For example, a property worth $800,000 would incur a tax of $8,000. The tax rate will increase to 2% for the second consecutive year and 3% for the third year and beyond. This additional tax is applicable to properties that are not the Principal Place of Residence in specific council areas, including though not limited to Whitehorse, Manningham, Monash & Boroondara.
In summary you have just under 7 months left of this year to ensure a property is occupied for 6 months because the use of your property in 2024 will impact whether you are liable for VRLT in 2025 and will continue to increase over the second and third year.
If you are aware of any properties that will be vacant for the rest of 2024, we can assist in the leasing and management of this property on your behalf.
You can obtain further information online Vacant residential land tax | State Revenue Office (sro.vic.gov.au)
