From www.dbalawyers.com.au: Victoria’s vacant residential land tax (VRLT) transitioned to a progressive rate system effective January 1, 2025, increasing from a flat 1% to a maximum of 3% of the land’s capital improved value based on the number of years the land remains vacant.

Thetax applies to all vacant residential land across Victoria, expanding from its previous focus on inner and middle Melbourne.

Property owners should prepare for potential increases in tax liability and consider compliance strategies to manage their VRLT obligations.