Peter Gerard Burke v Commissioner of State Revenue [2025] VCAT 493

Background

This matter related to the imposition of vacant residential land tax (VRLT) under the Land Tax Act 2005 on land owned by the taxpayer in Yarraville.

The taxpayer accepted the land was not used and occupied as a principal place of residence (PPR) for the 2019 year. However, he claimed he intended to improve the land for accommodation use, but was constrained by factors beyond his control.

This included COVID-19 restrictions, his poor health condition from November 2019 and a burglary that happened at the land in October 2021.

The Commissioner submitted, on the taxpayer’s own evidence, the land was not PPR land. Furthermore, the factors which the taxpayer identified as constraining his ability to use and occupy the land could not and did not apply to the 2019 year.

Issue

Whether the taxpayer’s land was used and occupied by the taxpayer or a permitted occupant as their PPR for the 2019 year, such that it was not subject to VRLT.

Decision

On 3 June 2025, the Tribunal provided written reasons confirming the assessment for VRLT in respect of the land for the 2019 land tax year, and there was no proper basis to further remit penalty tax, which was imposed at 20%.