From 1 January 2018, a vacant residential land tax will apply to homes in inner and middle Melbourne that are vacant for more than six months in the preceding calendar year.
This is a new tax, and is different to land tax, the absentee owner surcharge and the deferral annual vacancy charge.
The VRLT is assessed by calendar year (1 January to 31 December) and the six months do not need to be continuous.
As the legislation was only introduced in May 2017, homes will be considered to have been occupied between 1 January 2017 and 30 April 2017. For the 2017 calendar year, homes will only need to be occupied for a further two months between 1 May and 31 December to be considered to have been occupied for more than six months.
The VRLT is an annual tax calculated on 1% of the capital improved value (CIV) of taxable land which can be found on the council rates notice for the property.
If you own a property that is unoccupied for more than six months during 2017, you must notify the State Revenue Office by 15 January 2018.
For more information visit the SRO Website or contact our office.