If you own property in Victoria, it's important to understand the taxes you may pay and any benefits available to you
Ongoing property ownership in Victoria comes with obligations that may include paying tax each year for:
- Property other than your principal place of residence (PPR),
- Funding our fire services, and
- Private and public car parks
As a property owner with land in the municipalities of Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham, you may have to pay the growth areas infrastructure contribution (GAIC).
If you are buying your first home, it’s important to understand your financial responsibilities and what help is available to you.
Any property not your primary home
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. Importantly, 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. Exempt land does not include investment properties, commercial sites, and rentals or holiday homes, even if they are vacant.
You pay land tax when the total value of all the Victorian property you own is equal to or exceeds the threshold of $250,000 (for trustees, it's $25,000). This amount excludes exempt land.
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 our fire services
You will pay an annual fire services property levy, used to fund the Metropolitan Fire and Emergency Services Board and the Country Fire Authority, through your council rates notice for land you own in Victoria.
For non-rateable land, your council will issue a separate notice. If you already receive a council rates concession, you automatically receive a levy concession.
More detailed information, including how to calculate your levy amount, and common FAQs is available below.
Private and public car parks
The congestion levy is an annual charge levied each calendar year on off-street private or public car parking spaces within two specified areas of inner Melbourne.
Some exemptions and concessions apply, such as for residential and disabled parking, and spaces provided free of charge to visitors and patients.
Getting it right
Our priority is to help you pay the right amount of tax at the right time. Learn more.