What is Land Tax?

In Victoria you pay land tax on any property that you own when the capital improved value of the property or properties exceed $250,000 and you do not live in the property. 

A land owner can be an individual, a company or a trust.  Property that is owned individually or jointly is included in your land tax assessment. 

The State Revenue Office of Victoria oversee land tax in Victoria.  Land tax is calculated on the site value of all the land that you own at 31 December each year.  You do not pay land tax on a property if you live in the property as your principal place of residence. 

Farm land is also exempt from land tax as are rooming houses and charitable institutions.  It is important when you are buying or selling a property that your conveyancer obtains a Land Tax Clearance Certificate to ascertain if any land tax is owing on the property. 

The State Revenue Office do not adjust land tax for property purchased or sold.  As at 31 December the owner of the property is responsible for paying the land tax assessment for the following year. 

It is important you have received advice about the Land Tax payable prior to signing any Contract of Sale to purchase a property.