Vacant Land Tax Reminder - Deadline is 15 January 2025

November 18, 2024

Important Changes to Victoria’s Vacant Residential Land Tax in 2025


Starting 1 January 2025, Victoria's Vacant Residential Land Tax (VRLT) will expand beyond Melbourne to cover all residential properties statewide. If your property is vacant for more than six months in 2024, you could be liable for this tax.


Previously, this tax only applied to properties in Melbourne’s inner and middle suburbs. The new rules will introduce progressive tax rates based on how long a property remains vacant:


  • 1% of the property's value for the first year
  • 2% for the second consecutive year
  • 3% for the third year onwards


This change aims to encourage property owners to put vacant homes to better use. Exemptions still apply for holiday homes, renovations, and new acquisitions, but criteria are tightening, so careful planning is crucial.


Please note: You must still register by 15 January 2025 even if an exemption applies.



How We Can Help


At CoggerGurry, we’re here to help you navigate these changes:


  • Assess if your property is impacted
  • Identify potential exemptions
  • Manage compliance to avoid penalties


If you need support to prepare for these changes, get in touch with our team today!  Call our office on (03) 5571 0111

ANZAC Day Closure Dates

By Cogger Gurry • April 15, 2025
Our office will be closed for the Easter Holiday from Friday the 18th till Monday the 21st April, reopening on Tuesday the 22nd April 2025 Everyone here at CoggerGurry would like to wish you all a safe and happy Easter break

Easter Closure Dates

By Cogger Gurry • April 15, 2025
Our office will be closed for the Easter Holiday from Friday the 18th till Monday the 21st April, reopening on Tuesday the 22nd April 2025 Everyone here at CoggerGurry would like to wish you all a safe and happy Easter break

Fringe Benefit Tax (FBT) 2025: Increased ATO Scrutiny and Key Risks to Watch

By Cogger Gurry • April 15, 2025
The 2025–26 Federal Budget has reinforced the Albanese Government’s commitment to tax compliance, with a major boost in funding to the ATO to strengthen enforcement—including Fringe Benefits Tax (FBT). With that extra funding comes increased ATO scrutiny on employers. If you're responsible for FBT compliance, now’s the time to get your house in order. High-Risk Areas Under the ATO Microscope : 🚗 Car Fringe Benefits Incorrect vehicle classification (especially dual cab utes and SUVs). Invalid or poor-quality logbooks. Incorrectly treating private use (e.g. home to work, errands) as business use. Misuse of the statutory formula method. 🍽️ Meals & Entertainment Misunderstanding what qualifies as deductible vs. entertainment. Inadequate documentation for functions or staff events. Incorrect application of the "otherwise deductible" rule. ⚡ Electric and Plug-in Hybrid Vehicles From 1 April 2025 , PHEVs lose their FBT exemption unless: The car was in use before 1 April 2025, and There is a binding agreement to continue use post-1 April. Many employers are still unaware of these transitional rules. 🚨 What the ATO Is Watching Nil or non-lodged returns where fringe benefits were likely provided. Incorrect treatment of employee contributions . Mismatches between FBT and income tax reporting. Penalties can be up to 75% of the shortfall , so it pays to be proactive. ✅ What You Should Do Review the benefits you've provided in the 2025 FBT year. Reassess logbooks, vehicle use, and entertainment records. Seek advice on grey areas like PHEVs or meal benefits. Lodge and pay on time. 📞 Need help reviewing your FBT exposure before the deadline? Get in touch today—we’re here to help you stay compliant and penalty-free. Read more about this on our website HERE or give us a call on 03) 5571 0111 📅 Key FBT Dates for 2025 FBT year ends : 31 March 2025 Lodgment due (paper) : 21 May 2025 Lodgment due (tax agent) : 25 June 2025 Payment due : 28 May 2025
More Posts