Victoria cracks down on homeowners of empty properties after investigation finds hundreds of vacant homes in Melbourne

Almost 200 properties in just five apartment buildings in Melbourne have sat empty for more than six months, as the nation’s rental crisis deepens.

Owners of homes that sit vacant for more than six months in a year will be ordered to cough up extra tax, the Victorian Government has announced.

From January 1, homeowners across the state will be liable for vacant residential land tax (VRLT) if properties are vacant for more than six months in the calendar year.

The tax currently only applies to homes in the inner and middle suburbs of Melbourne, with the state government identifying hundreds of apartments that have been left vacant through a recent investigation.

Authorities in Victoria recently targeted five apartment buildings in Melbourne and found 177 properties that were liable for the tax.

The investigation will now expand to 13 more apartment towers across the city, as well as houses in the inner and middle suburbs of Melbourne.

Victorian Treasurer Tim Pallas said expanding vacant residential land tax will free up empty houses for rent and sale, boosting supply and making homes more affordable. Picture: NCA NewsWire / Luis Enrique Ascui

The tax was introduced to help ease the housing crisis by encouraging home owners to rent their properties for at least six months of the year to avoid receiving a VRLT assessment.

The longer a home sits empty, the more the tax rate increases, based on the number of consecutive years the property sits vacant.

Victorian Treasurer Tim Pallas said the government knows Victoria needs more homes, and by cracking down on vacant properties they were easing the housing pressure being felt across the state.

“Expanding vacant residential land tax will free up empty houses for rent and sale, boosting supply and making homes more affordable,” he said.

But shadow treasurer Brad Roswell disagreed, saying after 10 years of Labor budgets, life was getting harder for Victorians and housing was becoming more unavailable and unaffordable.

Victorian Shadow Treasurer, Brad Rowswell said housing in Victoria was becoming more unavailable and unaffordable after 10 years of Labor. Picture: NCA NewsWire / Valeriu Campan

“Since Labor were elected, they have introduced or increased 55 taxes, including around 30 taxes on land and property,” he said.

“What Labor can’t seem to understand is that when they tax things, they get more expensive and ultimately it’s vulnerable Victorians that are hit the hardest.

“A tax system that incentivises properties to be on the long term rental market, rather than continuing to punish rental providers with higher taxes, is something that Labor should consider as a matter of urgency.”

A recent investigation of five buildings in Melbourne found more than 170 vacant apartments that were liable for the vacant residential land tax.

Authorities in Victoria recently targeted five apartment buildings in Melbourne and found 177 properties that were liable for the tax.

The investigation will now expand to 13 more apartment towers across the city, as well as houses in the inner and middle suburbs of Melbourne.

Community Housing Industry Association Victoria chief executive Sarah Toohey said during the worst housing crisis that Victorians have experienced in their lifetimes, we shouldn’t be in a situation where properties are sitting empty.

“Housing stress and homelessness is through the roof - right now more than 146,000 Victorian households are in need of social and affordable housing,” she said.

“We need to be doing everything we can like taxing vacant properties and boosting funding to build more community housing to make sure all Victorians can get a roof over their head.”