What is land tax and how does it work?

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Land tax is a tax for land owners that they have to pay each year to the government. It applies everywhere in Australia except for Northern Territory. You will get a land tax assessment every year outlining the property you own and how much you will be taxed.

The amount of tax you pay depends on the value of all the taxable land you owned on 31 December the previous year. However, this is only if the value of combined land is equal to or above $300,000.

The Victorian Government introduced some changes to land tax rates in 2023.

For taxable land, a $500 surcharge will apply on amounts between $50,000 and $100,000. The surcharge will then increase to $975 for holdings of $100,000 to $300,000. For amounts above $300,000, the rate will increase by an extra 10%.

Who pays land tax?

Those that own the following properties have to pay land tax:

  • investment properties
  • commercial properties
  • holiday houses
  • vacant land

Your principal place of residence (AKA your home) is exempt from land tax.

What happens when I receive my land tax assessment?

Land tax assessments will be sent between January and May to either you or your accountant. It will list all the land you owned on 31 December of the previous year.

When you receive your assessment, you will need to check it to ensure all the details are correct such as all the land you own, exemptions and sold land.

If you need to change or add any details, request an exemption or, add and remove property, you can contact the State Revenue Office (SRO) within 60 days of receiving the assessment. This can be done via My Land Tax.

If nothing needs to be changed, you must pay the assessment before the due date, which can be completed online here.

Can I object my land tax assessment?

If you think you have been assessed incorrectly and want to formally dispute the assessment, you can request a change or lodge an objection.

If you believe the assessment is incorrect, you can object it. However, if you do so, you still have to pay the assessment fee in full by the due date or risk being charged interest. But don’t worry, if you are successful, the fee will be refunded back to your account.

Note: The objection has to be submitted within 60 days of receiving your assessment, so you will need to act quickly.

To object, submit all your details and documents to the SRO by email or post, or complete their form here.

When you object a land tax assessment, you’ll need: 

  • ‘details of the person assessed for land tax or their representative
  • the assessment or reassessment you are objecting to
  • land ownership records
  • grounds for your objection – i.e. the reasons why you disagree with our assessment
  • any supporting evidence you feel may help your case.’

Source: SRO

If you need assistance with land ownership and tax, get in touch or visit the SRO’s website here.