Significant Changes to Land Tax effective in 2024

4 March 2024

The Victorian State Government has recently brought into effect changes to Land Tax that may apply to you as a property owner in Victoria.


Land Tax Surcharge: In a bid to recover from the effects of pandemic-associated spending, the Victorian State Government has significantly increased the land tax rates payable on the value of your land holdings in Victoria. The State Government has also increased the number of property owners to whom Land Tax will apply to by reducing the minimum threshold unimproved value of land holdings from $300,000 to $50,000.   

The effect of these surcharges has resulted in many property owners seeing their Land Tax bill more than double for this assessment year in comparison with 2023.

Because your Land Tax is dependent on the unimproved value of your property, you may see an increase in your Land Tax out of proportion with the Surcharge because your property value has been increased into a higher Land Tax bracket.

Purchaser cannot be asked to cover Land Tax: If you plan to sell your property this year, you are no longer allowed to ask Purchasers in contracts signed after 1 January 2024 to cover their share of the Land Tax payable on the property at settlement. This means that, if you sign a contract in 2024 but only settle in 2025, you will be fully liable for the Land Tax assessed in 2024 and 2025.  

Vacant Residential Land Tax: If you own residential property anywhere in Victoria that is vacant for more than six months in 2024, you may be liable for the Vacant Residential Land Tax (‘VRLT’) in 2025.  The VRLT had previously only applied to vacant properties in certain central and inner Melbourne suburbs. In an effort to tackle the housing crisis, the State Government has now expanded its remit to the entire state.   The VRLT is a significant tax (starting at 1% p.a. of Capital Improved Value of the property) that increases progressively if the property is vacant for 2 and 3 consecutive years. However, a number of exemptions may apply to your vacant property that may shield you from the VRLT.


Please contact our property law team on 03 9510 0366 for further details or advice on how any of these changes may affect you.

Rod Saw          

Marvin Weinberg

Jean Jacob