What is Land Tax?
Land tax is an annual tax determined by the cumulative taxable value of all the land you own in Victoria, except for exempt properties like your primary residence. It is assessed as of midnight on December 31st preceding the assessment year.
Land tax becomes applicable when the cumulative taxable value of all your land holdings in Victoria, whether held individually, jointly, or in trust, as of December 31st, equals or surpasses $300,000 (or $25,000 for trusts). Whenever you own land in Victoria with a combined taxable value exceeding the relevant threshold, you are obligated to pay land tax.
Exempt properties, such as your primary residence, are excluded from the overall taxable value calculation.
New property owners:
If you’ve received a land tax assessment for the first time, it may be due to one of these reasons:
- You became the owner of taxable land, such as an investment property or a holiday home.
- The total taxable (site) value of all your taxable land has risen to meet or exceed the $300,000 threshold (or $25,000 for trusts). Land that was previously exempt from land tax no longer holds that exemption.
How is the taxable land value calculated?
Your 2023 land tax assessment is determined based on 2022 site valuations conducted as part of the annual state-wide general valuation process led by the Valuer-General Victoria.
Disagreeing with your site value:
While the Victorian State Revenue Office uses site valuations for land tax assessment purposes, it’s important to note that they are not directly involved in their preparation. If you disagree with the site value mentioned in your assessment, you have the option to raise an objection.
Your assessment
Your 2023 land tax assessment hinges on the site value of all taxable properties you owned at midnight on December 31, 2022. It means that the total taxable value of all your Victorian properties as of that date, excluding exempt properties like your primary residence, met or exceeded the $300,000 threshold (or $25,000 for trusts).
The land tax rate you pay is contingent on the total taxable value of all your Victorian properties.
Land tax applies to various types of land, including residential and commercial properties, apartments, and vacant land. If the residential property you own is not your primary residence and its site value, on its own or when combined with the taxable value of other properties you own, reaches or exceeds the threshold, you will be liable to pay land tax.
Property Transactions
The Victorian State Revenue Office does not adjust land tax assessments for properties bought, sold, or settled during an assessment year. Typically, your solicitor or conveyancer should advise you regarding any necessary land tax adjustments when you engage in property transactions.
How can I pay my land tax bill?
You can make land tax payments through various methods, including credit card, BPAY View, Autopay, or instalments. If your assessment includes options for payment at a Westpac Branch or in person at Australia Post outlets, you can also utilize those methods.
What if the land is held by a trust?
Land held in trust is treated differently from land owned individually or jointly. If you own land as a trustee of a trust for a beneficiary, you are subject to land tax if the cumulative taxable value of Victorian land holdings meets or exceeds the $25,000 trust threshold. There’s a surcharge rate for total taxable values between $25,000 and less than $3 million, with no surcharge for values at $3 million or higher. Trust surcharge rules have exclusions and exceptions.
I have received two assessments – is this right?
It’s possible to receive more than one assessment, depending on how you own land and who you co-own it with. There are three assessment types: individual assessments, joint assessments (for joint ownership), and trust assessments (for properties held in trust).
For further information on any of the above, or around Land Tax generally, visit the State Revenue Office website or, don’t hesitate to get in touch with our team.
