Victorian Land Tax and the State Election 2026

How is Victorian land tax calculated for 2026?

The 2026 assessment uses land valuations dated 1 January 2025 and generally looks at ownership at midnight on 31 December 2025. It uses site value, which excludes buildings and other improvements. Taxable Victorian holdings are generally aggregated for the owner, so the threshold is not a separate allowance for each property.

Under general rates, total taxable land value from $50,000 to below $100,000 attracts $500 tax; from $100,000 to below $300,000, the amount is $975. Higher values fall within progressive brackets. Trust and joint ownership arrangements have their own assessment rules.

NS Legal can set out your taxable interests from the title records and prepare a correction request for an omitted exemption or incorrect rate. Bring the complete assessment, including the statement of lands, rather than the payment slip alone.

Which properties may qualify for a land tax exemption?

A qualifying principal place of residence can be exempt, but a holiday home does not qualify merely because you use it regularly. Primary production land may also qualify under separate requirements. Eligibility needs to be checked against the actual occupation, use and ownership of the land.

The principal residence exemption generally does not apply to company-owned land. Trust ownership requires a closer review because only eligible arrangements qualify. Moving out, letting a home or undertaking building work can also require updated information to the SRO.

NS Legal can prepare the exemption material from your occupation history, leases and ownership documents, and address related land tax issues when reviewing your purchase contract.

Which changes are already law, rather than election promises?

The land tax changes applying from 1 January 2024 are already in force, and Schedule 1 of the Land Tax Act 2005 sets out rates for the 2024–2033 tax years. The legislation register identifies the current version as effective from 1 May 2026. The general threshold has not yet returned to $300,000 under the election proposals.

An announcement needs to be checked against enacted amendments and their commencement and transitional provisions before being used in advice about your liability. NS Legal can confirm which rules apply to the year you are dealing with and identify any proposed change that still needs legislative implementation.

What have the parties proposed before the 28 November election?

The Victorian Electoral Commission confirms the election date as 28 November 2026. As at 29 October 2026, the major parties have announced:

• Labor proposes relief beginning in 2027/28, progressively restoring the threshold from $50,000 to $300,000 over six years.
• The Liberal–National Coalition proposes progressively increasing the land tax threshold to $300,000 over five years.
• The Greens propose increased land tax for investors holding more than $5 million in residential investment properties, to help fund stamp duty relief for owner occupiers.

These are policy commitments. Your present liability still needs to be assessed under the law in force. NS Legal can set out the current tax liabilities in your property proposal and identify any assumptions that depend on future legislation.

Are absentee owner surcharge and vacant residential land tax separate?

Yes. The absentee owner surcharge adds to applicable land tax, while vacant residential land tax has a separate assessment. A promise to change the general land tax threshold does not itself establish an exemption from either charge.

For a surcharge question, bring details of the owners and ownership structure. For an empty property, bring records of its use and occupation. NS Legal can advise on the relevant land tax obligations and handle any foreign investment approval required for the transaction as a separate matter.

What should I do about an incorrect assessment or planned sale?

A formal objection to the legal basis of an assessment is generally due within 60 days of service. A site valuation objection has a different deadline: two months from service, which cannot be extended. You still need to pay on time while an objection is considered.

Keep the assessment and evidence of when it was received. Identify the disputed property record, exemption, valuation or legal ground, and bring documents supporting your position.

Selling during the year generally leaves the assessed owner responsible for the full year’s land tax. NS Legal can prepare a correction request or objection and address the land tax clauses in your sale contract. Book a consultation and bring the titles, valuation information and any relevant lease, occupation or trust documents.

Compiled from official sources; updated 29 October 2026.