Land Tax

Land tax and vacant residential land tax are state taxes that you might have to pay if you own property besides your main home. These taxes apply to things like investment properties, holiday homes, and even vacant land. This blog gives you a clear explanation of who needs to pay, what exemptions exist, and what to do if you receive a tax assessment — all based on trusted info from the State Revenue Office (SRO) of Victoria.

What is Land Tax and Vacant Residential Land Tax?

Who needs to pay, when, and why it matters.

Taxes aren’t the most thrilling topic. But if you own property (or you’re thinking about buying), it pays to know about land tax and vacant residential land tax. Why? Because these taxes can sneak up on you — especially if you’ve never received a notice before. We’re here to make things simple

First things first: What is land tax?

Land tax is a yearly tax charges on land you own, excluding your main home (your principal place of residence). It’s based on the total value of your land — not the house itself — as at 31 December of the previous year.

You may have to pay land tax if you own:

• Investment properties (like rental homes)
• Commercial properties (such as shops or offices)
• Holiday homes
• Vacant land

From 2024, thanks to the Victorian Government’s COVID Debt Repayment Plan, if the total value of your non-exempt land is $50,000 or more (or $25,000 for trusts), you could receive a land tax assessment.

What if you’ve never received a land tax notice before?

If it’s your first time, it just means one of your properties has passed the tax threshold. You can hop onto the SRO’s My Land Tax portal to:

• Check your property details
• Confirm if your home is correctly marked as exempt
• View your tax amount and set up a payment plan

Are there any exemptions?

Yes — not all land is taxed. Land tax does not apply to:

• Your main home (PPR)
• Farms (known as Primary Production Land)
• Rooming houses and some charitable institutions

Just a heads-up: if you move out of your home or start renting it out, your exemption ends and you’ll need to let the SRO know.

What about land owned jointly?

If you own land with others, even in a trust or company structure, you may still need to pay land tax. Each ownership combination is treated separately for tax purposes — it can get a bit complex, so it’s worth checking your SRO account or chatting to a legal advisor.

What is vacant residential land tax?

If you own residential land that’s unoccupied for more than six months in a calendar year, you might also need to pay vacant residential land tax. This is on top of land tax and mainly targets properties in inner and middle Melbourne — but the rules are expanding, so keep an eye out.

It’s the government’s way of encouraging property owners to use or rent out empty homes instead of leaving them idle.

What to do if you receive a land tax assessment

Don’t ignore it! Here’s what to do:

• Check the details via My Land Tax
• Make sure all land you own or no longer own is listed correctly
• Make any amendments if necessary (within 60 days)
• Set up a payment method: BPAY, card, or AutoPay

If you disagree with the property value, you can lodge an objection within 2 months of receiving your notice. If the problem is just outdated info (like the wrong property listed), you can usually fix that online without needing a full objection.

Even if you object, you still need to pay on time — if you’re successful, you’ll get a refund.

Owning property is a big deal — and with that comes responsibilities, including understanding land tax. The last thing you want is a surprise bill because of a technicality like a missed exemption or a vacant property.

Need a hand?
At HazeLegal, we help clients make sense of their land tax obligations, fix property records, and avoid unnecessary penalties. Whether it’s your first notice or you’ve owned land for years, we’re just a call away.

For more info, check out the official State Revenue Office website.

DISCLAIMER

This commentary is published by HazeLegal for general information only—it’s not legal advice. If you have questions or need advice for your specific situation, we recommend speaking to a lawyer or reaching out to us at http://hazelegal.com.au before making any decisions.