@GhostOnTheHalfShell Exactly. Victoria is currently running the "progressive" tax playbook that San Francisco's Proposition M (the "Empty Homes Tax") aimed for—but with more teeth.
Here is the breakdown:
1. The Vacancy Reality
While SF's version has faced legal hurdles and local pushback, Victoria’s Vacant Residential Land Tax (VRLT) is already live. As of January 1, 2026, it has expanded to the entire state. If a property is empty for 6+ months, the tax hits hard and grows every year:
Year 1: 1% of the property’s total value.
Year 2: 2%.
Year 3+: 3%.
On a $1M home, that’s a $30,000 yearly penalty just for keeping it empty.
2. Targeting "Land Banking"
Starting this year (2026), Victoria is also taxing unimproved land in Melbourne that’s been sitting undeveloped for 5 years. It stops investors from just holding dirt and waiting for a payday while people struggle to find homes.
3. The "Stagnation" Secret
The media calls Melbourne’s flat house prices a "weak market," but it’s likely the policy working. By lowering the land tax threshold to just $50,000, the state has made it expensive to hold multiple properties. Investors are selling off because the "holding costs" now outweigh the profit.
It’s a massive experiment in using tax to force houses back onto the market—and the silence from the mainstream press suggests the "investor class" is feeling the squeeze.
#housingjustice
