Hayton Kosky Lawyers

VRLT Decision Tool

Land Tax Act 2005 (Vic) — Division 6 & Division 9

Does Vacant Residential Land Tax Apply to Your Property?

This tool guides owners and practitioners through the seven-step VRLT assessment framework — from residential zoning and AVPCC classification through to vacancy, exemptions, notification obligations, and the SRO's escalating rate algorithm.

Assessment Steps

a
b
c
d
e
f
g

Step A — Residential Zoning

Residential Zoning

A

Is the land in a residential zone (or a zone capable of residential use) according to the planning scheme?

VRLT applies to 'residential land' under s 34B of the Land Tax Act 2005 (Vic). The starting point is whether the land is capable of being used solely or primarily for residential purposes. A planning report for the specific property should be obtained to confirm the zone. Note: from 1 January 2026, land in a zone other than a non-residential zone in metropolitan Melbourne may also be caught if undeveloped for 5+ years.

s 34B(1) Land Tax Act 2005 (Vic)

Decision Tree

Your path is highlighted in blue

ExemptLiableVisited
NoYesNoYesNoYesNoYesYesNoYesNoYesNoYesNoYesNoNoYesYesNoYesNoYesNoYesNo
Zone
Not Res.
Premises
Undev.
Not Res.
Capable
Incapable
Excluded?
Excluded
AVPCC
AVPCC
Seek Adv.
Vacancy
Not Vacant
Constr.
Exemption
Div 9 Ex.
2 yrs?
< 2 yrs
Defence
Acceptable
Notified?
Late?
1st Year?
1% CIV
2-3% CIV