With current data matching processes and 2016 being the most recent year of valuation, land tax has been
a common topic of interest with our clients. Some have been wondering if they should be paying it and others
wondering why they are being charged it.
Below is a listing of the most common questions we receive about land tax.
What is Land Tax?
Land Tax is a state tax on the total value of all Victorian property you own less any exempt land over $250,000.
In the case of trustees, the threshold is $25,000
What is exempt land?
Exempt land is your own home, primary production land and land used by charities. Investments properties and
holiday homes are not exempt from land tax even if they are vacant.
When is Land Tax calculated?
Land tax is calculated at midnight on the 31 December each calendar year.
How is Land Tax calculated?
Every second year, the local council conduct a valuation on each property within its municipality. The valuation is known
as a site valuation and only reflects the unimproved value of the land ie not including any improvements such as buildings.
The councils also use this information to calculate their municipal rates.
The Land tax is calculated by applying the appropriate tax rate to the site value of all your land holdings (excluding exempt land such as your home)
Why do I have to start paying Land Tax?
You may have bought additional land during the year that is not exempt, land that was previously exempt may no longer
be exempt or land that you own in Victoria may have increased in value and taken you over the land tax threshold which is currently $250,000.
Need additional information?
Please call the office for an appointment