Land tax valuation - frequently asked questions
1. 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 regular statewide general valuations process. The 2018 valuations have been used to calculate land tax in 2019.
2. I have not received a land tax assessment before, so why am I getting one now?
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 $250,000 ($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 land previously exempt may no longer be exempt.
3. Do I have to pay land tax while waiting for a decision on my valuation objection?
Yes, you do have to pay land tax while awaiting 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 tax, interest may 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.
4. Can I object to the site value of land included in a reassessment?
Yes. 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. If you have been reassessed for additional land, the objection period in relation to the additional land is:
- two months if the site value is based on a valuation made by a 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 2019 land tax assessment on 1 March 2019 in respect of her property Greenacre.
We discover an additional property owned by Julie, Blackacre, and issue a reassessment on 1 June 2019 for Greenacre and Blackacre.
If Julie wants to object to the site value for Blackacre, she must lodge an objection within two months. However, Julie cannot object to the site value for Greenacre as the two-month objection period ended at the beginning of May 2019.