By Trend News Line 2024-05-24 00:38:00.
The Allan Labor Government’s Crackdown on Vacant Properties
In an effort to address the housing crisis in Melbourne, the Allan Labor Government has launched a crackdown on vacant properties across the city. The aim is to make more homes available to Victorians who are in desperate need of affordable housing.
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Identifying Vacant Properties
Through a compliance investigation, hundreds of properties in apartment towers have been identified as vacant for more than six months. These properties are now liable for vacant residential land tax (VRLT), which is intended to encourage owners to put their empty homes on the rental market.
Results of the Investigation
In the initial investigation of five buildings, a total of 177 properties were found to be liable for VRLT. This resulted in 337 VRLT assessments covering the 2019 to 2024 land tax years. The government plans to expand the investigation to an additional 13 apartment towers, as well as houses in the inner and middle suburbs of Melbourne.
Escalating Tax Rates
Starting from January 1, 2025, VRLT will apply to vacant homes across all of Victoria if they have been empty for more than six months in the previous calendar year. The tax will increase based on the number of consecutive years the property has been vacant, with rates ranging from 1 per cent to 3 per cent.
Encouraging Homeowners to Act
The government hopes that these measures will encourage owners of vacant properties to either rent them out or sell them, thereby increasing the supply of available housing. Holiday homes are typically exempt from VRLT, but the exemption has been expanded to include properties held in trust or owned by companies.
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Future Plans for VRLT
From January 1, 2026, VRLT will also apply to empty residential blocks in Melbourne’s inner and middle suburbs. This move is aimed at discouraging land banking and incentivizing property owners to build more homes to address the housing shortage.
How Victorians Can Help
Victorians can play a role in identifying vacant properties by notifying the State Revenue Office about homes that could be used for living or development. Information about VRLT, including exemptions, is available on the State Revenue Office website.
Government’s Perspective
Treasurer Tim Pallas highlighted the importance of cracking down on vacant properties to ease housing pressures in the state. He emphasized that expanding VRLT will free up empty houses for rent or sale, ultimately making homes more affordable for Victorians..
1. Homes available for Victorians
2. Making more homes accessible for Victorians.
