Paying land tax for the first time
If you have received a land tax assessment for the first time, it’s for one or more of the following reasons:
- You became the owner of taxable land in the past calendar year, such as an investment property or holiday home,
- The total taxable (site) value of your taxable land has increased equal to or in excess of the $250,000 threshold (for trusts, it's $25,000), or
- We have assessed land that was previously exempt from land tax
Because apartments have a site value, you may have to pay land tax on apartments if the site value of the apartment when added to the taxable value of your other properties exceeds the threshold, or if it meets or exceeds the threshold in itself.
2016 was a revaluation year
The site value (also known as land value or taxable value) of your property is important because it is used to calculate land tax.
Disagreeing with your site value
Municipal councils conduct site revaluations across the majority of Victorian properties every two years, with site value used to calculate council rates and also land tax. While we use these valuations for land tax purposes, we neither do the valuations nor oversee them.
2016 was the most recent revaluation year and is used to calculate the 2017 and 2018 land tax assessment notices. In some cases, a property's site value may have exceeded the threshold.
Period of assessment
You are assessed for land tax when the total taxable value of all the Victorian property you own as at 31 December, minus exempt land such as your home, is equal to or exceeds the threshold of $250,000 each calendar year (for trustees, it's $25,000).
This generally means the site value of all the taxable property you own at midnight on 31 December this year will determine if we need to send you an assessment notice next year.
Property bought, sold or settled
We do not adjust land tax assessments for property bought, sold or settled during an assessment year. Your solicitor or conveyancer can advise you about any land tax adjustments made on settlement.
Use the links at the top of this page to learn more about land tax and your obligations as a land owner in Victoria.