Victorian Treasurer Tim Pallas has announced the expansion on vacant residential land tax at a Property Council of Australia breakfast this morning.

It currently only applies to Melbourne’s inner and middle-ring suburbs, but new legislation will include all of Victoria in the policy.

Nine News reporter, Heidi Murphy, said the new policy “came to the surprise of just about everybody in the room”.

Press PLAY to hear her explain how the new tax policy will work and when it will be implemented

(Photo by Daniel Pockett/Getty Images)