Important updates from the State Revenue Office
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Vacant residential land tax and absentee owner surcharge notifications
Notifications for vacant residential land tax (VRLT) are due by 15 February 2026 and the absentee owner surcharge are due by 15 January 2026. If you have made a notification in the past, you only need to make a new one if your circumstances have changed.
Vacant residential land tax
VRLT applies to residential land across all of Victoria if it is vacant for more than 6 months in the preceding calendar year. For example, if your property was vacant in 2025, you may need to pay VRLT in 2026.
From 1 January 2026, VRLT is extending to land in metropolitan Melbourne that has remained undeveloped for a continuous period of 5 years or more and is capable of residential development.
If you own residential land that was vacant in 2025, you must notify us by 15 February 2026.
Some land may be exempt. Even if you believe your land is exempt, you still need to make a notification to apply for an exemption.
Absentee owner surcharge
The absentee owner surcharge applies to Victorian land owned by an absentee individual, corporation or trust – that is, people who own property in Victoria but who live outside of Australia (depending on the landholder’s visa status).
If you are an absentee owner, you must notify us by 15 January 2026.
Changes to state taxes November 2025
The State Taxation Further Amendment Act 2025 received Royal Assent on Tuesday 25 November 2025.
The Act introduces several changes to Victoria’s taxation laws, including:
- changes to congestion levy rates and an expansion of the Category 2 area
- new land tax and vacant residential land tax exemptions
- changes for New Zealand citizens in relation to foreign purchaser additional duty, the absentee owner surcharge and First Home Owner Grant.
Find out more about the changes.
2024–25 Annual Review is now available
The State Revenue Office 2024–25 Annual Review is now available, outlining our activities, strategies and performance for the year, including our financial statements and key statistics about the revenue we administer.
Compliance areas of focus in 2025–26
Our compliance programs help maintain fairness and integrity in Victoria’s tax system. Last financial year, we assessed $888.7 million from compliance activities, and more than 90% of investigations identified non-compliance.
While we run extensive compliance programs for all our revenue lines, we target certain priorities each year. To help customers do the right thing, we have published our 2025–26 compliance areas of focus.
Land transfer duty public rulings on economic entitlements and the consideration payable for a transfer of land
Published ruling on economic entitlements: This public ruling provides guidance on key concepts in the economic entitlement provisions. It supports our other economic entitlements rulings on the acquisition of economic entitlements in land (service fees) and the calculation of economic entitlements.
Draft ruling on the consideration payable for a transfer of land: You are invited to provide feedback on our draft ruling which explains when a purchaser’s payment of a vendor’s tax liability will be subject to duty on the basis that it forms part of the consideration for the transfer of land. This includes cases where a purchaser agrees to pay a vendor’s land tax, windfall gains tax or congestion levy liability.
It does not change the Commissioner’s position on ordinary adjustments for rates, water or other utilities during the rating period that includes settlement, nor our stance regarding late settlement interest.
This new approach is consistent with the law. You now have the opportunity to make submissions through this consultation process.
Feedback is welcome via consultation@sro.vic.gov.au until 5 pm Wednesday 24 December 2025.
SRO