Vacant residential land tax

Vacant residential land tax (VRLT) is an annual tax on vacant residential land in Victoria. It aims to increase the supply of housing.

VRLT is based on how the property was used in the previous year. For example, if your property was vacant in 2025, you may need to pay VRLT in 2026.

VRLT applies to all residential land in Victoria. Before 2025, it only applied to these council areas in Melbourne: Banyule, Bayside, Boroondara, Darebin, Glen Eira, Hobsons Bay, Manningham, Maribyrnong, Melbourne, Monash, Moonee Valley, Merri-bek (formerly Moreland), Port Phillip, Stonnington, Whitehorse and Yarra.

VRLT is different from:

• land tax

• the absentee owner surcharge

• the federal vacancy fee for foreign owners.

You may need to pay VRLT if you own:

• residential land with an existing home that was vacant for more than 6 months in the previous calendar year

• residential land with an existing home that has been under construction or renovation, or uninhabitable, for 2 years or more

• from 1 January 2026, land in metropolitan Melbourne that has remained undeveloped for a continuous period of 5 years or more and is capable of residential development. The 5-year period may occur prior to 1 January 2026.

Property clearance certificates include outstanding VRLT.

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