• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Ballart Lawyers Logo


  • Home
  • Our Services
    • Conveyancing
    • Family Law
    • Property Law & Leasing
    • Wills & Power of Attorney
  • Central Highlands Conveyancing
  • Our Team
    • Annette Stone
    • Carly Burke
    • Cindy Halliwell
    • Elizabeth Joseph
    • Joanne Parker
    • Melissa Kinniburgh
    • Stephanie Lannen
    • Tara Leonard
  • Publications
    • Family Law Publications
      • Smart Phone Apps Assisting in Co-Parenting Relationships
      • Getting Divorced
      • Intervention Orders – What you need to know
      • Agreeing to an Intervention Order Without Admission
      • Covid-19 and the Impact on Shared Parenting Arrangements
      • Parenting Orders
    • Property Law & Conveyancing Publications
      • Statement of Adjustments – How they work
      • Verification of Identity
      • Tree Disputes with Neighbours
      • Destruction of Fence Caused by Bushfire
      • Land Tax
      • GST Withholding Regime
      • Spousal and Domestic Partner Transfers
      • Septic System and Disclosure Requirements
      • Retail Leases
      • The First Home Buyers Grant & Stamp Duty Benefits – Changes you need to know
      • Withholding Tax on Real Estate
      • What is a Section 173 Agreement?
      • Caveats – What you need to know
      • NICO ‘Not In Common Ownership’ Subdivisions
      • Buying Off the Plan
      • Electronic Signatures
      • Easements – The Basics
      • Withholding Tax Update
      • Fencing Laws In Victoria
      • Should I use a Lawyer for my Conveyancing Matter?
      • Owner Builders & Conveyancing
      • Want to Remove an Easement on Title? Here is the Basics of How
      • Restrictive Covenants Modification & Removal
      • Protecting your Neighbours Property against Building Works
      • Buyer Beware: Is a Real Estate Agent an agent for the purposes of a Notices under the Sale of Land Act?
      • Nominations
      • Rent Relief During COVID-19
      • HomeBuilder Grant
      • Subject to Finance Clause
      • Stamp Duty on Late Settlement Interest
    • Wills & Estates Publications
      • Contesting a Will (Part IV Claims)
      • Changes to Intestacy Law
      • Superannuation Death Benefits
      • Effects of Marriage and Divorce on Wills
      • Powers of Attorney – Fiduciary Duty
      • What is Probate?
    • Brochures
  • Testimonials
  • Contact Us

Land Tax

What is Land Tax?

Land tax is a state tax calculated on the capital unimproved value of the property as at 31 December in each year. The tax rate that applies depends on what type of owner you are, the total taxable value of the property and if any exemptions apply.

Land tax may be payable on rental and investment properties, commercial property, holiday homes and vacant land, subject to the threshold (see below).

Land Tax Threshold

There are thresholds that need to be reached before a landowner will be charged land tax. The threshold at the moment in Victoria is $250,00.00 each calendar year. In other words, a land owner will pay land tax when the total value of all their Victorian property as at 31 December in each year, minus exempt land, is equal to or exceeds the threshold.

If a landowner owns the land as trustee of a trust, the threshold amount is $25,000.00. Further, a surcharge rate on the general land tax applies for the aggregate land holdings of the trust from $25,000 through to less than $3 million. The surcharge ceases to apply for taxable land holdings valued at $3 million or more.

Exemptions from Land Tax

Most Victorian landowners are not liable for land tax because their property is their principal place of residence. Land owners who use the land for primary production or rooming houses and charitable institutions are also exempt from land tax.

If a land owner decides to rent out their principal place of residence or change their address, the principal place of residence exemption ends, and the property may be subject to land tax if the property is valued at or above the threshold amount.

Payment of Land Tax

The State Revenue Office (“SRO”) is tasked with issuing assessment notices and collecting land tax. Land tax assessment notices are issued each year between late January and May. Land tax can either be paid in a lump sum or quarterly.

Absentee Owners

From 1 January 2017, a 1.5% absentee owner surcharge on land tax applies to land owned by an absentee owner.

Vacant Residential Property Tax (“VTPT”)

From 11 January 2018, a VTPT will be levied on dwellings that are vacant for more than a total of 6 months in a calendar year. The VTPT aims to encourage owners who unreasonably leave their properties vacant to make them available for either purchase or rent.

The VTPT only applies to vacant homes in the following municipal councils – Banyule, Bayside, Boroondara, Darebin, Glen Eira, Hobsons Bay, Manningham, Maribyrnong, Melbourne, Monash, Moonee Valley, Moreland, Port Phillip, Stonnington, Whitehorse and Yarra.

The VTPT is self-reporting. That is, owners of vacant residential properties will be required to notify the State Revenue Office of any vacant properties they own. Liability for the VTPT will be triggered on a calendar year basis (like land tax) and will be charged at a rate of 1 per cent of the property’s capital improved value.

In recognition that there may be legitimate reasons for a property to be left vacant, there will be specific exemptions from the VTPT, such as a holiday home, a city unit for work purposes, deceased estates and homes owned by Victorians temporarily overseas.

For further information on the land tax, please contact us at reception@ballaratlawyers.net.au or on 5303 0281. 

For more information on our conveyancing arm, click here. 

The information on this website is of a general nature only. It is not, nor is it intended to be legal advice. You should consult a lawyer for individual advice about your particular circumstances.

Liability limited by a scheme approved under Professional Standards Legislation. 

Click here to go back to Publications. 

 

 

Primary Sidebar

HOURS: 9.00am – 12.30pm and 1.30pm-5.00pm. Our office is closed between 12.30pm-1.30pm.

Address: 42 Lydiard Street South, Ballarat Central VIC 3350

Main Line: 5303 0281 

reception@ballaratlawyers.net.au

Annette Stone

annette@ballaratlawyers.net.au

 Carly Burke

carly@ballaratlawyers.net.au

Cindy Halliwell

cindy@ballaratlawyers.net.au

Elizabeth Joseph

elizabeth@ballaratlawyers.net.au

Joanne Parker

joanne@ballaratlawyers.net.au

Melissa Kinniburgh

melissa@ballaratlawywers.net.au

Stephanie Lannen

stephanie@ballaratlawyers.net.au

Tara Leonard

tara@ballaratlawyers.net.au

Footer

Ballarat Lawyers

We have a team of dedicated legal professionals who will manage your legal affairs with enthusiasm and accountability.

 

Our Advantages

  • Skilled legal advice
  • Customer focused
  • Upfront on costs
  • Tailored solutions
  • Local knowledge of the area
  • Flexible to assist in meeting client needs

Contact Us

  • 42 Lydiard Street South, Ballarat Central, VIC 3350
  • 53030281
  • reception@ballaratlawyers.net.au

Copyright © 2023 · Website hosting by 61 Design · Login