Brent Hewitt
Contact West Carr & Harvey

Victorian property taxes update

There has been an increase in land tax across Victoria and following the recent state budget announcement, it looks as though it is not set to change anytime soon and landowners will be required to pay more tax.

Land tax – what’s changed
Since 1 January 2024 there has been a significant increase in tax bills for landowners. Those who previously received land tax bills can expect a higher bill and those who were previously exempt from land tax will receive a tax bill for the first time now that the tax-free threshold has dropped from $300,000 to $50,000.
Some exemptions do apply, including main residence and farmland. Further information on these changes and the thresholds which apply can be found here:
Significant changes to Victorian land tax assessments to result in higher land tax bills — Sladen Legal

Vacant residential land tax

From 1 January 2025 the vacant residential land tax will apply to most unoccupied residential land in Victoria. There will be some exemptions including holiday homes and homes being renovated.

However, these exemptions will have new rules apply such as the location of the owner’s main residence, and if the holiday home is held by a trust or company.

The rate of tax payable may also increase per year for land which has been vacant for multiple years.

Further information on the specifics of these changes can be found here:
Vacant Residential Land Tax Changes and Significant Actions Required by Landowners — Sladen Legal

What is the “commercial and industrial property tax”?

From 1 July 2024 there will be a new tax introduced in place of stamp duty for commercial and industrial property. The commercial and industrial property tax will be calculated at one percent of the property’s unimproved land value. There are some exemptions available.

This tax is in addition to ordinary land tax. Further details on the exemptions and how the tax will be applied can be found here:

Stamp Duty Out, Commercial and Industrial Property Tax In Starting 1 July 2024 — Harwood Andrews Lawyers Geelong and Melbourne

If you have any questions about your land tax please feel free to contact us.