Dec 23, 2024 Joel Hernandez
Land Tax reporting due soon
The Vacant Residential Land Tax (VRLT), is a Victorian state tax on residential property which has remained unoccupied for more than 6 months of the calendar year, and has been subject to ordinary Victorian land tax. It applies to individuals, companies, Trusts and Super Funds. Some limited exemptions apply. As a state tax, detailed advice on its application should be sought from your solicitor.
While this tax was initially limited to residential property in certain municipalities, it was extended to cover residential properties in the whole of the state of Victoria, effective from 1st January 2024, thus broadening it reach.
If you own residential property in Victoria which was vacant for more than 6 months in 2024, you will need to notify the State Revenue Office (SRO) via its online Portal before 15th January 2025.
You are also required to make a notification if you believe you are entitled to an exemption from VRLT. This includes (subject to specific conditions):
- Holiday homes
- Properties used and occupied for work purposes eg a city apartment for someone who generally lives in regional Victoria;
Your RDL accountant can provide you some guidance in relation to this reporting, however the SRO has not provided a means for us to report on your behalf as your agent.
While the SRO may be understanding of delays in reporting, it can apply penalties for late or a lack of reporting, so it might be a good idea to get your reporting done and dusted before heading off on that well deserved post-Christmas summer break.
