The cost of owning property in Victoria: Land tax

In this informative article, we look at Land Tax in Victoria.

 

 When is land tax payable?

Land tax is payable in certain circumstances and is payable in addition to other taxes such as the Victorian vacant residential land tax, the absentee owner surcharge and the federal annual vacancy fee.

Land tax is payable when the total site value of all the Victorian property that you own as at 31 December is equal to or exceeds the current limit of $250,000.00.

The site value is the unimproved value of your land and does not include capital improvement such as buildings.

 

Exemption

Your home, that you live in is exempt from this tax, however, if you rent out your home or change your address, the exemption ends, and you must notify the State Revenue Office immediately. Other exemptions also apply.

 

What is Land Tax Payable On?

 

Land tax is payable on rental and investment properties, commercial properties such as retail shops, office premises and factories, holiday homes, vacant land, and other non-exempt land.

 

Land Tax Rates

The current land tax rates apply annually on a scale from approximately 0.2% to 2.25 of the total site value of all Victorian property that you own as at 31 December. It all depends on the site value.

 

Examples

 

If you have a site value of $500,000.00 then the land tax payable is $775.00.

 

If the site value is $5,000,000.00 then the land tax payable is $69,975.00.

 

To find out what your potential land tax liability may be, you can do so via the State Revenue Office Land Tax Calculator.

 

Please see our COMPARISON-TABLE summary.

We invite you to contact us if you require further information and/or assistance with identifying and managing your obligations in relation to the cost of owning your property in Victoria.

 

Disclaimer: The information contained in this briefing is general in nature, not intended to be definitive, and does not take into account specific circumstances.

It is recommended that you seek appropriate legal advice as to the application of the taxes discussed in this briefing to your specific circumstances.