Land Tax Guide

Understanding Victorian land tax

How Land Tax Works

Victorian land tax is calculated on the total taxable value of all land you own in Victoria as of midnight on 31 December each year. It's based on the site value (unimproved value) of your land, not including buildings or other improvements.

The tax is calculated using progressive rates, meaning higher-value land is taxed at higher rates on the excess amount above each threshold.

2024-25 Individual/Company Tax Rates

$0 - $50,000

Nil

Tax-free threshold

$50,000 - $100,000

$500

Flat rate

$100,000 - $300,000

$975

Flat rate

$300,000 - $600,000

$1,350 + 0.3%

Base plus 0.3% on excess over $300,000

$600,000 - $1,000,000

$2,250 + 0.6%

Base plus 0.6% on excess over $600,000

$1,000,000 - $1,800,000

$4,650 + 0.9%

Base plus 0.9% on excess over $1,000,000

$1,800,000 - $3,000,000

$11,850 + 1.65%

Base plus 1.65% on excess over $1,800,000

$3,000,000+

$31,650 + 2.65%

Base plus 2.65% on excess over $3,000,000

2024-25 Trust Tax Rates

$0 - $25,000

Nil

Tax-free threshold

$25,000 - $50,000

$82 + 0.375%

Base plus 0.375% on excess over $25,000

$50,000 - $100,000

$676 + 0.375%

Base plus 0.375% on excess over $50,000

$100,000 - $250,000

$1,338 + 0.375%

Base plus 0.375% on excess over $100,000

$250,000 - $600,000

$1,901 + 0.675%

Base plus 0.675% on excess over $250,000

$600,000 - $1,000,000

$4,263 + 0.975%

Base plus 0.975% on excess over $600,000

$1,000,000 - $1,800,000

$8,163 + 1.275%

Base plus 1.275% on excess over $1,000,000

$1,800,000 - $3,000,000

$18,363 + 1.1072%

Base plus 1.1072% on excess over $1,800,000

$3,000,000+

$31,650 + 2.65%

Base plus 2.65% on excess over $3,000,000

Absentee Owner Surcharge

If you're an absentee owner (foreign person or entity), you'll pay an additional 4% surcharge on top of the regular land tax. This surcharge is calculated on the total land value, not just the tax amount.

Example: If your land is valued at $500,000 and you're an absentee owner, you'll pay the regular land tax of $1,950 PLUS an additional 4% surcharge of $20,000 (4% of $500,000), for a total of $21,950.

Ownership Types

Individual

Standard rates apply with $50,000 tax-free threshold. Land held in your personal name.

Company

Same rates as individuals apply. Land held by Australian companies.

Trust

Higher rates apply with lower $25,000 tax-free threshold. Trust rates are significantly higher than individual rates.

Super Fund

Same rates as individuals typically apply for complying superannuation funds.

Key Points

• Tax is based on site value, not improved value

• Calculated on total Victorian land holdings

• Principal place of residence is generally exempt

• Primary production land may qualify for concessions

• Assessed annually as at 31 December

• Payment due by 15 February (or by instalments)

• Trust rates are significantly higher than individual rates

• Absentee surcharge is 4% of land value, not tax amount

Disclaimer

This information is based on official 2024-25 Victorian land tax rates and is general in nature. Land tax rules can be complex and may change. Always consult the State Revenue Office Victoria or a qualified tax professional for advice specific to your situation.