ByAintree Group

Building, Buying Or Investing? Key Victorian Land Tax Changes You Should Know 

If you own property in Victoria, are planning to build or renovate, or you’re considering purchasing an off-the-plan property, there are several recent legislative changes that may affect the land tax you pay and the concessions available to you.  

While the changes won’t impact every property owner, understanding them now may help you avoid unnecessary costs and make more informed decisions.

The Building Legislation and Treasury Legislation (Tax Relief) Amendment Act 2026 was introduced to provide targeted tax relief for Victorian property owners while making several property tax rules more flexible. The reforms affect land tax exemptions, off-the-plan stamp duty concessions and the Emergency Services and Volunteers Fund.

Here’s what you need to know about the key changes.

Greater flexibility for homeowners building or renovating.

For many Victorians, their family home is exempt from land tax under the Principal Place of Residence (PPR) exemption.

Previously, some homeowners undertaking major renovations or rebuilding works risked losing access to the Principal Place of Residence exemption because they were temporarily unable to live in the home. The new rules provide greater flexibility, helping eligible homeowners maintain the exemption while construction is underway.

From 1 January 2027, changes to the legislation will make the PPR exemption more flexible for eligible homeowners whose principal place of residence is under construction or undergoing substantial renovation.

The changes are designed to ensure homeowners aren’t unfairly impacted simply because they cannot live in their home while building works are taking place.

If you’re planning a significant renovation or rebuilding project, it’s worth understanding how these changes may apply to your circumstances.

Off-the-plan stamp duty concession extended.

The Victorian Government has also extended the temporary off-the-plan duty concession by an additional six months. Eligible contracts signed between 21 October 2024 and 20 April 2027 can still access the concession.

Emergency Services and Volunteers Fund changes.

The legislation also includes changes to the Emergency Services and Volunteers Fund (ESVF). 

Most notably, the planned increase to the fixed charge for non-principal place of residence residential land, such as investment properties and holiday homes, has been deferred. 

The increase, which was due to commence on 1 July 2026, will now begin on a future date to be announced by the Victorian Treasurer. 

The legislation also expands certain rebates and exemptions for eligible volunteers, Homes Victoria and community housing organisations. 

Key Dates

  • 1 July 2026 – ESVF increase deferred.
  • 23 June 2026 – Act receives Royal Assent.
  • 1 January 2027 – New PPR land tax exemption rules commence.
  • Off-the-plan concession – Extended for a further six months.

What should property owners do? 

While these changes won’t affect everyone immediately, they may present opportunities for homeowners, investors and property buyers. 

  • Homeowners who are building or renovating will have more certainty that they can retain their principal place of residence land tax exemption.  
  • Investment property owners won’t see the previously planned increase to the ESVF fixed charge just yet.  
  • Off-the-plan buyers have an extra six months to take advantage of reduced stamp duty. 

If you’re: 

  • renovating your principal place of residence,
  • purchasing an off-the-plan apartment or townhouse,
  • investing in Victorian property,
  • reviewing the ongoing costs of owning investment property,

it’s worthwhile understanding how these legislative changes may impact your position. 

What should you do next?

If you’re planning any property decisions over the next 12 months, now is a good time to:

  • Confirm whether you’re eligible for the updated PPR exemption.
  • Check whether an off-the-plan purchase still qualifies for the concession.
  • Review the ongoing holding costs of any investment properties.
  • Seek advice before signing contracts or commencing major building works.

As with any property transaction or tax matter, the rules can be complex and will depend on your individual circumstances.

If you’re unsure how these changes apply to you, the team at Aintree Group can help you understand your obligations and identify any available concessions before you make your next property decision.

Helpful Resources

This is general advice only and has not been prepared with your individual situation or needs in mind. For personalised advice, we highly recommend that you seek professional guidance from a qualified adviser.

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