Regional Victoria Vacant Residential Land Tax (VRLT) 2025 Explained
- Future Accounting
- Sep 9
- 3 min read
Written by: Melissa Cunliffe (CA)
How the Regional Victoria Vacant Residential Land Tax 2025 affects Holiday Homes and Land Banking
The Regional Victoria Vacant Residential Land Tax (VRLT) 2025 marks a major shift in property tax rules, expanding beyond metropolitan Melbourne and applying across the entire state. From holiday homes to land banking, regional property owners now need to be aware of how these changes could affect them - and what steps they can take to stay compliant and in control.
What changes from 2025 for regional property owners
From 1 January 2025, residential properties located anywhere in Victoria, including regional towns and rural areas, will be subject to the Regional Victoria Vacant Residential Land Tax (VRLT) 2025 if left vacant for more than six months in a calendar year.
This is a significant expansion of the previous Melbourne-only regime and means that regional owners should carefully review their land use each year.
Examples of how the VRLT impacts regional Victoria
Here are some common scenarios where the Regional Victoria Vacant Residential Land Tax (VRLT) 2025 may apply:
Holiday homes in popular destinations such as Daylesford, Lorne, or Bright: To qualify for a holiday home exemption, the owner must have their principal place of residence (PPR) in Australia and occupy the holiday home for at least four weeks each year.
Land banking near regional hubs such as Ballarat, Bendigo, or the Geelong outskirts: Holding residential-zoned land without development or occupation for long periods may now trigger VRLT liability.
Uninhabited properties in smaller towns: Even if not part of large development plans, residential-zoned land that sits unused for more than six months could attract the tax.
What the 2026 VRLT changes mean for regional landowners
The 2026 expansion of the VRLT - covering long-term vacant, unimproved land - currently only applies to metropolitan Melbourne. This means undeveloped residential land in regional Victoria is not subject to the five-year development test at this stage.
However, regional owners should stay alert. It is possible that the Victorian Government will extend this approach statewide in future, especially in areas experiencing rapid regional growth. Holding rural land that is zoned residential, even if intended for future family use or investment, could still expose owners to VRLT under current rules.
Regional Victoria: at-a-glance summary
What regional property owners should do next
To stay ahead of the Regional Victoria Vacant Residential Land Tax (VRLT) 2025, owners should:
Audit land usage annually and keep detailed records of occupation, development, and tenancy.
Check zoning carefully - even rural-seeming land may be zoned residential.
Apply early for relevant exemptions, especially for genuine non-residential use or land under development.
Plan ahead for future development timelines or changes of use, particularly in regional growth areas.
Need help understanding how the Regional Victoria Vacant Residential Land Tax (VRLT) 2025 applies to your property? Our expert team can guide you through exemptions, planning strategies, and compliance, so you can move forward with confidence.
Book an appointment with us today and get peace of mind for your property planning.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
