How does site value affect land tax?
Land tax is calculated using the total site value of all your taxable land, with tax rates progressively increasing as land values rise. Generally, as land values in Victoria increase, the amount of land tax you pay increases.
Site valuations are not determined by the State Revenue Office but as part of the annual statewide general valuations process.
I haven't received a land tax assessment before, so why am I getting one now?
Taxable land you own in Victoria may have increased in value and taken you over the land tax threshold. You pay land tax if the total taxable value of all the Victorian land you own, individually or jointly, as at 31 December, is equal to or exceeds $300,000 ($25,000 for trusts).
Other changes may also have brought you over the land tax threshold. For example, you may have bought land during the year that is not exempt or previously exempt land may no longer be exempt.
Do I have to pay land tax while I wait for a decision on my valuation objection?
Yes, you do have to pay land tax while waiting for a decision on your valuation objection. Under the Taxation Administration Act 1997 we have the power to recover tax even though an objection, review or appeal is pending.
If you do not pay the assessed land tax, interest will continue to accrue. If your objection is allowed or partially allowed, you will receive a refund of the overpaid tax together with interest calculated at the market rate.
Can I object to the site value of land included in a reassessment?
Yes, in certain circumstances you can object to the site value of land included in a reassessment. There are some instances where we will reassess a customer’s liability and amend the initial notice of assessment to add land to their landholdings or increase the value of land in the initial assessment. If you have been reassessed for additional land or an increase in a land’s valuation, the objection period in relation to the additional land or increase in land value is:
- two months if the site value is based on a valuation made by the Valuer-General or a municipal council
- 60 days if the site value is based on a Commissioner’s valuation.
In both cases, the objection timeline starts from the date of the notice of reassessment.
Julie is issued with a 2022 land tax assessment on 1 March 2022 in respect of her property Greenacre.
We discover an additional property, Blackacre, is owned by Julie and issue a reassessment on 1 June 2022 for Greenacre and Blackacre.
If Julie wants to object to the site value for Blackacre, she must lodge an objection within two months from the date she receives the notice of reassessment. However, Julie cannot object to the site value for Greenacre as the two-month objection period ended at the beginning of May 2022.