Land tax has become a major talking point for Victorian investors this year, following recent adjustments to thresholds and rates.
Understanding how land tax works
Land tax applies to the total taxable value of all land you own in Victoria, excluding your principal place of residence. The value is based on the site value (not the improved value) determined by the State Revenue Office (SRO).
Key updates for 2025
The tax-free threshold remains at $50,000 for individuals and $25,000 for trusts.
A temporary surcharge continues to apply for higher-value holdings.
Owners of holiday homes and second residences should be aware of the new Absentee Owner Surcharge, which may apply even for Australian residents who live interstate for extended periods.
Smart tips to manage land tax
Regularly check your property valuations via the SRO portal.
Review ownership structures with your accountant — trusts and joint ownerships can change how tax is calculated.
Budget ahead by setting aside funds quarterly rather than facing a large annual bill.
Keeping informed and planning ahead can help minimise the sting of land tax while ensuring full compliance.