Owning a Property
There can be costs associated with owning a property, such as land tax, the fire services levy and congestion levy.
- Australian HomeBuilder Grant
- Apply for a first home buyer duty exemption, concession or reduction (including the 50% duty waiver)
- Register for or log in to My Land Tax
- Understanding your land tax assessment
- Make a vacant residential land tax notification
- Notify us of your absentee owner status
- Register as a car park owner or operator
Becoming a property owner in Victoria
If you are thinking of buying a property in Victoria, or currently do so, it’s important to understand what is involved.
For example, you pay land transfer (stamp) duty when you purchase property, and there are a range of benefits that may be available to you, including duty exemptions and concessions, and the First Home Owner Grant.
If the property is not going to be your home, you also need to know about land tax.
Owning property in Victoria
Once you own property in Victoria, you need to be aware of:
- Paying land tax on properties that are not your principal place of residence.
- Contributing to the funding of emergency services via the fire services property levy.
- Paying the congestion levy if you own off-street parking spaces in two areas of inner Melbourne.
If you own property in Victoria, you may have to pay annual land tax. This depends on the total value of all the land you own as at 31 December (either individually, jointly or on trust) and what the land is used for. Apartments can also be subject to land tax as they have a site value.
Your home is exempt, and so is land used for primary production or for charitable purposes. Investment properties, commercial sites, and rentals or holiday homes, even if they are vacant, attract land tax.
You pay land tax when the total value of all the Victorian property you own, including your exempt land, is equal to or exceeds the threshold of $300,000 (for trustees, it's $25,000).
From 1 January 2016, an absentee owner surcharge on land tax applies to Victorian land owned by an absentee owner.
From 1 January 2018, vacant residential land tax applies to homes in inner and middle Melbourne that were vacant for more than six months in the preceding calendar year.
Funding emergency services
The fire services property levy (FSPL) funds Victoria’s emergency services, and you pay the levy through your council rate notice for land you own in Victoria. State-wide rates apply to properties in the same property classification across Victoria from 1 July 2020.
More about the fire services property levy
This annual levy aims to reduce traffic congestion in central Melbourne by encouraging more motorists to regularly use public transport. Introduced in 2005, the congestion levy is charged each calendar year to off-street private and public car parking spaces in two specified areas.
Some exemptions and concessions apply, such as for residential and disabled parking, and spaces provided free of charge to visitors and patients.
More about the congestion levy
Getting it right
Our priority is to help you pay the right amount of tax at the right time, and to assist you, we have prepared specific information in relation to some of the taxes and grants we administer, outlining:
- our compliance activities,
- common errors to avoid, and
- how to submit a voluntary disclosure or tip-off.
News and updates
22 May 2023
Victorian Budget 2023–24
18 October 2022
Our document exchange service is ending
12 October 2021
Proposed windfall gains tax
- View more news