Changes taking effect on 1 July 2026

Here is a summary of the Victorian taxation changes taking effect on 1 July 2026. Our website has been updated to reflect the changes.

Emergency services and volunteers fund

The fixed charge for residential properties (including vacant residential) will increase from $136 to $139.

The fixed charge for non-residential properties will increase from $275 to $282.

Learn more about the emergency services and volunteers fund

Growth areas infrastructure contribution

The growth areas infrastructure contribution rates for the 2026–27 financial year will be:

• $122,260 per hectare for type A land ($118,830 in 2025–26)
• $145,220 per hectare for types B-1, B-2 and C land ($141,150 in 2025–26).

The growth areas infrastructure contribution threshold for excluded building will increase from $1,485,650 to $1,528,532.

Interest payable on deferred growth areas infrastructure contribution will increase from 5.0871% to 5.6063%.

Learn more about the growth areas infrastructure contribution

Metropolitan planning levy

The metropolitan planning levy threshold will increase from $1,311,000 to $1,344,000.

Learn more about the metropolitan planning levy

Commercial passenger vehicle service levy

The commercial passenger vehicle service levy rate will increase from $1.20 per ride to $1.25 per ride.

Learn more about the commercial passenger vehicle service levy

Insurance

From 1 July 2024, duty on certain business insurance premiums is gradually being abolished over a 10-year period.

On 1 July 2026, duty on business insurance premiums will reduce from 8% to 7%.

Learn more about the abolition of duty on business insurance premiums

Motor vehicle duty

The motor vehicle duty luxury car threshold will increase from $80,567 to $80,809.

Learn more about motor vehicle duty

Wages exempt from payroll tax

The exempt motor vehicle allowance rate will increase from 88 cents per kilometre to 91 cents per kilometre.

The exempt amount for accommodation allowances will increase from $323 per night to $328.85 per night.

Learn more about wages exempt from payroll tax

Motor vehicle duty – drive-away deals

The 2026–27 guidelines, used by licensed motor car traders to calculate the dutiable value of motor vehicles sold on a ‘drive-away deal’ basis, have been published on our website. These guidelines apply from 1 July 2026.

Fees and interest rates

• The interest rate payable on a tax default will increase from 11.78% to 12.43%. This is calculated by adding the market rate of 4.43% in 2026–27 (3.78% in 2025–26) and premium rate of 8%.
• The Freedom of Information application fee will increase from $33.60 to $34.50.
• The property clearance certificate fee will increase from $19.50 to $20.

Victorian Homebuyer Fund thresholds

Income thresholds for the Victorian Homebuyer Fund – which is now closed to new participants – for 2026–27 are:

• $151,265 for single participants
• $242,025 for joint participants
• $242,025 for single parent participants.