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From 1 January 2025, the holiday home exemption from vacant residential land tax (VRLT) applies to exempt holiday homes owned by certain companies and trustees of trusts, provided certain conditions are met.

Companies or trustees of trusts are eligible for the exemption if: 

1. There was an existing arrangement over the land prior to the Government announcing this measure on 28 November 2023. This means:

  • the company or trustee of the trust have continuously owned the home since 28 November 2023; and
  • there have been no changes in beneficial ownership of the land since 28 November 2023, except for transfers involving relatives. Note that companies or trustees of trusts that entered into a contract to purchase the home on or before 28 November 2023 but settle after that date meet this condition.

2. One or more eligible natural persons must have used another property in Australia as their PPR in the year preceding the tax year and they must have used and occupied the holiday home for at least 4 weeks in the year preceding the tax year, as follows: 

Owner of land Natural persons who must have a PPR in Australia Natural persons who must occupy holiday home
Company  Shareholders who owned at least 50% of the shares in the company The shareholders or their relatives
Trustee of unit trust scheme Unitholders who owned at least 50% of the units in the scheme The unitholders or their relatives
Trustee of fixed trust Beneficiaries who held at least 50% of the beneficial interest in the trust property The beneficiaries or their relatives
Trustee of discretionary trust Specified beneficiaries of the trust or their relatives The specified beneficiaries or their relatives
  • The use of the property by different eligible people can be aggregated to meet the 4-week occupancy requirement. However, the use cannot be concurrent.

3. The Commissioner must be satisfied that the residence was used and occupied as a genuine holiday home in the year preceding the tax year having regard to the following factors:

  • the location of the land; and
  • the distance between the location of the land and the principal place of residence of the owner, the vested beneficiary, a shareholder, unitholder, beneficiary or specified beneficiary (as applicable); and
  • the nature and frequency of the use of the land.
Last modified: 22 October 2024

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