64 Jolimont Street, East Melbourne VIC 3002

Accounting News

Vacant Residential Land Tax –(Melbourne metro) – Covid impact?

For land tax years commencing on or after 1 January 2018, the owner of a property that is “residential land” situated in specified metropolitan areas of Melbourne that is ‘vacant’ for six months or more (in aggregate) in the previous year is subject to an annual ‘vacant residential land tax’ equal to one percent of the property’s capital improved value.

Property is presumed to be ‘vacant’ for a period if it is not used any occupied by either:-

  • the owner
  • a permitted occupant
  • or a tenant

A property is also considered to be vacant if – at the end of the previous land tax year – it has been undergoing construction or renovation for more than two years or has been uninhabitable for two years or more.

Exemptions include where the property:-

  • is exempt from land tax
  • became a ‘residential’ property during that year
  • was used as a holiday home and occupied by the owner for at least four weeks

There could be difficulties satisfying this requirement in 2020 unless there is a covid exemption.

An owner of a property subject to the tax must notify the State Revenue Office by 15 January of the following year.


W Marshall & Associates 64 Jolimont Street, East Melbourne VIC 3002

Important: This is not advice. Clients should not act solely on the basis of the material contained in this Commentary. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before taking any action. The Commentary is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.