Pay Victorian land tax (including absentee owner surcharge)
VIC land tax applies on aggregated taxable value above $50K (general) / $25K (trust); absentee owner +4% surcharge.
Who must comply
Individuals, companies and trustees owning taxable land in Victoria at midnight on 31 December, where total taxable value reaches the threshold ($50,000 for individuals; $25,000 for land held on trust). Absentee individuals, corporations and trusts also pay the absentee owner surcharge.
What triggers it
Owning taxable land at midnight on 31 December of the previous year; a seller remains liable for the full year's land tax. Owners must also notify the SRO of changes that affect liability, such as moving out of a home, building or renovating, or starting to lease it.
When due
Assessments are generally issued between January and June each year; payment is due 12 weeks after the issue date, or by instalments under an Autopay payment plan.
Evidence required
Land tax assessment notices (viewable for the last 5 years in My Land Tax); principal place of residence and other exemption applications; trust nominations and trustee notifications of beneficial interests or unitholdings; absentee owner status notifications; records supporting any objection.
Max penalty
Penalty tax on unpaid tax arising from a tax default or notification default: 25% for failing to take reasonable care, 50% for recklessness and up to 75% for intentional disregard of the law (rising to 90% where information is hidden or an investigation obstructed), reduced for voluntary disclosure. Interest is charged on unpaid tax and penalty tax at 12.43% a year for 1 July 2026 to 30 June 2027
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Land tax under the Land Tax Act 2005 (Vic) is an annual tax on the total taxable value of land owned in Victoria, using site values supplied by the Valuer-General. It falls on residential investment properties, commercial and industrial property, vacant land and holiday homes owned by individuals, companies or trusts; the owner's home (principal place of residence), primary production land, rooming houses and charitable institutions can be exempt. Since 1 January 2024 it applies where total taxable holdings are $50,000 or more for individuals, or $25,000 or more for land held on trust, and is calculated on a sliding scale with different rates by type of owner. An absentee owner surcharge of 4% applies from the 2024 land tax year on top of the general and trust surcharge rates. Each distinct combination of joint owners is assessed separately.
Enforced by
Source legislation
Topics
Related
- VICPay Victorian stamp duty on residential propertyVariable rates by purchase price; foreign purchaser surcharge 8%. PPR concession available.
- NSWPay NSW land taxNSW land tax applies on aggregated unimproved land value above $1.075M general threshold (2026).
- QLDPay Queensland land taxQLD land tax applies on aggregated land value above $600K (individuals) / $350K (companies + trusts).
- VICPay Victorian payroll tax when threshold metVIC: 4.85% on Australian wages above the $1 million tax-free threshold (FY2026-27).
- NSWPay NSW payroll tax when threshold metNSW: 5.45% on Australian wages above the $1.2 million tax-free threshold (FY2026-27).
- QLDPay Queensland payroll tax when threshold metQLD: 4.75% on Australian wages above the $1.3 million tax-free threshold (FY2026-27).
Frequently asked questions
- Who must comply with Victorian land tax (including absentee owner surcharge)?
- Individuals, companies and trustees owning taxable land in Victoria at midnight on 31 December, where total taxable value reaches the threshold ($50,000 for individuals; $25,000 for land held on trust). Absentee individuals, corporations and trusts also pay the absentee owner surcharge.
- What triggers Victorian land tax (including absentee owner surcharge)?
- Owning taxable land at midnight on 31 December of the previous year; a seller remains liable for the full year's land tax. Owners must also notify the SRO of changes that affect liability, such as moving out of a home, building or renovating, or starting to lease it.
- When is Victorian land tax (including absentee owner surcharge) due?
- Assessments are generally issued between January and June each year; payment is due 12 weeks after the issue date, or by instalments under an Autopay payment plan.
- What is the maximum penalty for Victorian land tax (including absentee owner surcharge)?
- Penalty tax on unpaid tax arising from a tax default or notification default: 25% for failing to take reasonable care, 50% for recklessness and up to 75% for intentional disregard of the law (rising to 90% where information is hidden or an investigation obstructed), reduced for voluntary disclosure. Interest is charged on unpaid tax and penalty tax at 12.43% a year for 1 July 2026 to 30 June 2027
- What evidence is required for Victorian land tax (including absentee owner surcharge)?
- Land tax assessment notices (viewable for the last 5 years in My Land Tax); principal place of residence and other exemption applications; trust nominations and trustee notifications of beneficial interests or unitholdings; absentee owner status notifications; records supporting any objection.
Source: https://sro.vic.gov.au/owning-property/land-tax/understanding-land-tax. Rules Mate is not a law firm. Always verify against the live regulator source before acting.