Land Tax

March 13, 2024

Kathryn Hamilton

What is land tax?

Land tax is an annual tax based on the total taxable value of all the land you own in Victoria, excluding exempt land such as your home (principal place of residence).

Land tax is calculated using the site values (determined by the Valuer-General Victoria) of all taxable land you owned as at midnight on 31 December of the year preceding the year of assessment.

You may have to pay land tax if you own, either individually or jointly with others:

• investment properties, including residential rental properties
• commercial properties such as retail shops, office premises and factories
• holiday homes
• vacant land

As part of the COVID debt levy, Victorian land tax has significantly increased for the next ten years. From 1 January 2024, the following changes were made:

• The tax-free threshold for when the total taxable value of the non-exempt land you own has reduced from $300,000 to $50,000.

• The adding of a fixed charge. A temporary fixed charge of $500 is levied on general taxpayers with landholdings between $50,000 and $100,000 and a charge of $975 is levied on general taxpayers with total landholdings between $100,000 and $300,000.

• Increasing the rate. Tax rates have temporarily increase by 0.1 per cent. For general (non-trust) taxpayers with total landholdings above $300,000 and trust taxpayers with total landholdings above $250,000, land tax rates have increase by $975 plus 0.1 per cent of the taxable value of their landholdings.

Existing land tax exemptions, such as principal place of residence and primary production land, have continued to apply. This is provided the property and the owner continue to satisfy the relevant eligibility requirements.

Land tax general rates (from 2024 land tax year)

Total taxable value of land holdings	Land tax payable
< $50,000	Nil
$50,000 to < $100,000	$500
$100,000 to < $300,000	$975
$300,000 to < $600,000	$1,350 plus 0.3% of amount > $300,000
$600,000 to < $1,000,000	$2,250 plus 0.6% of amount > $600,000
$1,000,000 to < $1,800,000	$4,650 plus 0.9% of amount > $1,000,000
$1,800,000 to < $3,000,000	$11,850 plus 1.65% of amount > $1,800,000
$3,000,000 and over	$31,650 plus 2.65% of amount > $3,000,000

Land tax trust surcharge rates (from 2024 land tax year)

Total taxable value of land holdings	Land tax payable
< $25,000	Nil
$25,000 to < $50,000	$82 plus 0.375% of amount > $25,000
$50,000 to < $100,000	$676 plus 0.375% of amount > $50,000
$100,000 to < $250,000	$1,338 plus 0.375% of amount > $100,000
$250,000 to < $600,000	$1,901 plus 0.675% of amount > $250,000
$600,000 to < $1,000,000	$4,263 plus 0.975% of amount > $600,000
$1,000,000 to < $1,800,000	$8,163 plus 1.275% of amount > $1,000,000
$1,800,000 to < $3,000,000	$18,363 plus 1.1072% of amount > $1,800,000
$3,000,000 and over	$31,650 plus 2.65% of amount > $3,000,000

Examples

  – Individual

If you own personal a holiday or rental property with a site value of $750,000, the land tax on this property will be $3,150 ($2,250 + $900(0.6% x $150,000)).

  – Trust

If a Trust owns a holiday or rental property with a site value of $750,000, the land tax on this property will be $5,725 ($4,263+ $1462(0.975% x $150,000)).