Victorian Land Tax: When It’s Calculated, What It’s Based On And What To Check

Future Accounting
5 minutes ago
4 min read

Victorian land tax is an annual tax that applies to many property owners across Victoria. Each year, the State Revenue Office (SRO) issues Victorian land tax assessments based on land ownership and statutory land values. Because errors are common and the amounts involved can be significant, understanding how Victorian land tax works — and what to review when your notice arrives — is essential.

Below, we explain when Victorian land tax is calculated, what value it is based on, when to expect your assessment notice and what to check before paying.

When Victorian land tax is calculated

Victorian land tax is calculated as at midnight on 31 December each year. Your land ownership position at this date determines whether Victorian land tax applies for the following calendar year.

This means:

If you own taxable land at 31 December, Victorian land tax may apply even if you sell the property shortly after.
If you purchase property after 31 December, it will generally not be assessed for Victorian land tax until the following year.
Ownership structures in place at 31 December are critical to how Victorian land tax is assessed.

What value Victorian land tax is based on

Victorian land tax is calculated using the site value (also known as unimproved value) of land, not the market value and not the purchase price.

Key points to understand:

Site value excludes buildings and improvements.
Site values are determined annually by the Valuer-General Victoria.
Victorian land tax assessments use the site value as at 31 December of the previous year.

For example, Victorian land tax assessed for 2025 is based on site values as at 31 December 2024.

If you own multiple taxable properties, the SRO generally aggregates the site values of all Victorian land held under the same ownership, which can push you into higher Victorian land tax brackets.

When to expect your Victorian land tax assessment notice

Victorian land tax assessment notices are usually issued between January and March each year.

Notices are issued:

Via mySRO for registered users
By post if you are not registered electronically

Payment is typically due within 60 days of issue. Some taxpayers may be eligible to pay Victorian land tax by instalments, depending on the size of the assessment.

What to review when you receive your Victorian land tax notice

Victorian land tax notices are not automatically correct. Reviewing your assessment carefully can help prevent overpayment and ongoing errors.

Ownership details

Confirm that:

All properties listed are actually owned by you
Properties sold before 31 December have been removed
Ownership percentages are accurate

Property classifications and exemptions

Check whether:

Your principal place of residence has been incorrectly assessed for Victorian land tax
Exempt land, such as primary production land, has been included

Site values

Review the site values used in your Victorian land tax assessment and compare them to prior years. Significant increases may warrant further investigation or a valuation objection.

Aggregation and ownership structure

Ensure properties have been grouped under the correct entity. Individuals, companies and trusts are subject to different Victorian land tax rules and rates, and errors here can materially increase tax payable.

Surcharges

Confirm whether any trust surcharge or absentee owner surcharge has been applied correctly. These are common areas where Victorian land tax assessments go wrong.

What to do if your Victorian land tax assessment is incorrect

If something doesn’t look right:

Act quickly, as strict objection deadlines apply
Seek advice before paying where the error is material
Keep supporting documentation such as contracts, settlement statements and valuation notices

Mistakes in Victorian land tax assessments often carry forward year after year if not corrected, increasing the long-term cost.

Final thoughts

Victorian land tax is assessed annually based on land ownership at 31 December and the site value of land as determined by the Valuer-General. Assessment notices are issued early each year, and reviewing them carefully can save thousands of dollars over time.

If you are unsure whether your Victorian land tax assessment is correct, our team can review your notice, explain your obligations and help you legally minimise Victorian land tax where possible. Book an appointment with us to gain clarity and peace of mind before you pay.

Disclaimer  

This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.  

Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder 

Liability limited by a scheme approved under professional standards legislation.