Overview of the Victorian Land Tax System in 2024

harry15793
Nov 28, 2024
2 min read

The Victorian Government’s new land tax rules, effective from January 1, 2024, are set to significantly impact landowners across the state. With revised thresholds, surcharges, and rates, many taxpayers will experience unexpected increases in their land tax obligations. This post outlines the key changes and actions required to navigate the new landscape.

What’s Different in Victorian Land Tax for 2024?

Land tax is levied annually based on the unimproved value of land holdings. The changes introduced in 2024 will affect all landowners, with new surcharges, lower thresholds, and increased tax rates.

Key Updates

Lower Tax-Free Threshold:
- Previously, no land tax was payable on land valued under $300,000. From 2024, the threshold will drop to $50,000, capturing many additional landowners.
Increased Land Tax Rates:
- Land values over $50,000 will now incur a base tax starting at $500 per year. Rates escalate as land value increases, with significant rises for higher-value properties.
- The top marginal rate for land valued over $3 million increases from 2.55% to 2.65%.
Foreign Surcharge Hike:
- The absentee owner surcharge for foreign individuals, companies, and trusts doubles from 2% to 4%, bringing the top rate for affected owners to 6.65%.
Trust Surcharge:
- Trust-held land continues to attract higher surcharge rates, exacerbating the impact for certain property structures.

Updated Land Tax Rates (Effective 2024)

Land Value	Land Tax (Annual)
$50,000–$100,000	$500 (previously $0)
$100,000–$300,000	$975 (previously $0)
$300,000–$600,000	$1,350 + 0.3% of amount > $300,000
$600,000–$1,000,000	$2,250 + 0.6% of amount > $600,000
$1,000,000–$1,800,000	$4,650 + 0.9% of amount > $1,000,000
$1,800,000–$3,000,000	$11,850 + 1.65% of amount > $1,800,000
$3,000,000 and over	$31,650 + 2.65% of amount > $3,000,000

Who Is Affected?

These changes are estimated to impact nearly one million Victorian taxpayers, including:

360,000 New Taxpayers: Landowners who previously fell below the $300,000 threshold but now qualify for taxation.
Existing Land Tax Payers: Those with higher-value properties will see a steep increase due to rate hikes.
Foreign Owners: Doubling the surcharge imposes a higher financial burden.

Action Plan for Landowners

Review Assessments:
- Check your land tax notice to ensure the property details and valuations are accurate.
Document Land Use:
- Maintain clear records to support claims for exemptions or reduced rates.
Lodge Objections:
- If the assessment seems incorrect, objections must be submitted in writing within 60 days of receiving the notice.
Seek Professional Advice:
- Understanding these changes and their impact requires expert guidance to minimize tax liabilities and ensure compliance.

How We Can Help

Our team specializes in navigating land tax issues, from reviewing assessments to lodging objections and securing exemptions. With extensive experience in Victoria’s land tax system, we ensure your property’s tax obligations are accurately assessed and minimized.