From 1 January 2018, vacant residential land tax (VRLT), an annual tax, is set at 1% of the capital improved value (CIV) of taxable land.
From 1 January 2025, a progressive rate of VRLT will apply to non-exempt vacant residential land across all of Victoria. The rate of VRLT is based on the number of consecutive tax years the land has been liable for VRLT and is:
- 1% of the CIV of the land for the first year the land is liable for VRLT where the land was not liable for VRLT in the preceding tax year
- 2% of the CIV of the land where the land is liable for VRLT for a second consecutive year
- 3% of the CIV of the land where the land is liable for VRLT for a third consecutive year.
