2019 marks the start to annual land tax evaluations for Victorian land owners who are eligible to pay the tax. Until now, land tax assessments and levies were based on valuations made every second year.
You may have to pay land tax if you own, either individually or with others, any of the following in Victoria:
• Investment properties, including residential rental properties.
• Commercial properties such as retail shops, office premises and factories.
• Holiday homes.
• Vacant land.
It does not apply to property owners who live in their own home, or to properties valued under
$250,000.
Updated land tax assessment notices are set to be delivered by the Victorian State Revenue Office from January until April 2019, and are based on site values prepared by councils in 2018.
The annual land revaluations are a positive for investors as it means land tax rates will be more reflective of your property portfolio’s current value, and will take into account any fluctuations from the past 12 months.
It is worth noting that the State Revenue Office does not adjust land tax for property bought, sold or settled during an assessment year. The owner of a property as at 31 December is responsible for paying the land tax assessment for the following year, so please seek the advice of your solicitor or conveyancer about any land tax adjustments that need to be made on settlement.
For more information about land tax in Victoria visit the State Revenue Office Victoria website at: https://www.sro.vic.gov.au/land-tax
