The site value of your land is used to calculate land tax.
The capital improved value of your land is used to calculate vacant residential land tax.
Site value and land tax
Site value is the unimproved value of your land. It excludes capital improvements such as buildings. We use the site value determined as part of the general valuation process, which is also used by many local councils to calculate their rates.
The most recent valuation year was 2016, with those site valuations used to calculate land tax in 2017 and again in 2018. Site valuations will occur again in 2018 and be used for the 2019 land tax assessments.
On your land tax assessment, site value is referred to as taxable value. We calculate land tax by applying the appropriate tax rate to the total taxable value of your land holdings, which does not include exempt land such as your home. You can find the taxable value of your land on the right hand side of your Statement of Lands.
How site value affects land tax
Increases in the site value of your land may mean your land moves into a higher tax bracket. This is because land tax is calculated using a sliding scale of tax rate based on the total taxable site value.
If your land value has increased to the extent that it moves you into a higher tax bracket, your land tax bill will also increase. In some cases, the percentage increase in the land tax you must pay will be higher than the percentage increase of your total taxable land value.
Capital improved value and vacant residential land tax
The capital improved value of a property is the value of the land, buildings and any other capital improvements made to the property.
To calculate vacant residential land tax, we use the capital improved value determined as part of the general valuation process. Many local councils also use this to calculate their rates.
As with site value, you can find the capital improved value of your property on your council rate notice.
On your vacant residential land tax assessment, capital improved value is referred to as taxable value. We calculate vacant residential land tax by applying the tax rate of 1 per cent to the capital improved value of your vacant property.
Disagreeing with site or capital improved values
If you disagree with either the site value (for land tax purposes) or the capital improved value (for vacant residential land tax purposes) in your assessment or in your council rates notice you can object. You cannot object to the same valuation more than once within 12 months.
Objecting to the values set out in your State Revenue Office land tax or vacant residential land tax assessment is a different process to objecting to those set out in your council rate notice.
If you are objecting to the site value or capital improved value detailed in your:
- council rate notice you do this with the council, which issued you the rate notice,
- land tax assessment or vacant residential land tax assessment you do this with the State Revenue Office, which issued you the assessment
The table below details the relevant information about each.
If you want to object to anything other than the site or capital improved value detailed on your land tax or vacant residential land tax assessment, refer to our amendments and objections information.
Sometimes, instead of council valuations, we use valuations made by the Valuer-General on behalf of the Commissioner of State Revenue, which are called Commissioner’s valuations. If the valuations on your assessment are based on a Commissioner’s valuation, we consult with the Valuer-General before making a decision on your objection. Your objection will be determined under the Taxation Administration Act 1997 by the Commissioner.
Please read our amendments and objections information, which has more information on objecting to site and capital improved valuations, requesting an amendment to your assessment and objecting to your assessment.
Paying your assessment while you object
You should pay your land tax or vacant residential land tax in accordance with your assessment while you are waiting for a decision.
If you do not pay, interest may accrue on the outstanding amount. If your objection is allowed or partially allowed, you will be refunded any overpayment with interest.
|If you want to object to the valuations on your:|
|Council rates notice - site value or capital improved value||Land tax (site value only) or vacant residential land tax (capital improved value only) assessment notice|
|Who should I object to?||The relevant council||The State Revenue Office|
|When must I object by?||Within two months of receiving your rate notice||Within two months of receiving your assessment notice|
|How do I object?||Complete the appropriate council valuation objection form||Complete and lodge a Land Valuation Objection Form online|
|What happens next?||Check with the council as this is a matter between you and them||
We acknowledge receipt of your objection in writing and explain the next steps
If the site value or capital improved value of the land is based on a council valuation, we forward your objection to that council
If the site value or capital improved value of the land is based on a Commissioner’s valuation, we consult with the Valuer-General before we make a decision on your objection
|How long will it take for a decision?||
A council has four months from receiving your objection from us to provide a determination. If it is not made in this time, the council is deemed to have disallowed the objection. You can then apply to the Victorian Civil and Administrative Tribunal (VCAT) for a review or apply to refer the matter to the Supreme Court if the VCAT president is satisfied the matter raises questions of unusual difficulty or general importance
We have 90 days from the date of receiving your objection to a Commissioner’s valuation to make a determination. If it is not made in this time, you can request that we refer the matter to VCAT or treat the objection as an appeal to the Supreme Court of Victoria
|Can a council or the Commissioner make a determination after those time frames?||Yes||Yes|
|What can result from my objection?||It can be allowed in full or in part, or disallowed||
It can be allowed in full or in part, disallowed or deemed invalid
If the site or capital improved value of the land is reduced by the Valuer-General, we will amend your tax assessment and refund any overpaid tax, including the appropriate interest amounts payable under the Tax Administration Act 1997
|How will I find out the result of my objection?||The council will let you know in writing||
If the valuation was carried out by a council, you will be advised in writing of the decision by that council
If the council recommends to the Valuer-General to adjust the site value of the land, the Valuer-General will notify both you and us, in writing, of the decision
If the Valuer-General does not confirm the recommendation within two months of receiving it from the council, the Valuer-General is deemed to have disallowed the recommended adjustment