September 21, 2018

How is Land Tax Calculated in Victoria?

If you are a property owner, chances are you will need to pay land tax unless it is your own home. One of the factors to take into account when it comes to land tax is that the calculation may vary depending on the state or territory that the property is in. For instance, if you own a property in Victoria, here are some of the things you need to know about land tax, including how it is calculated:

Land tax assessments are issued between late January and late May every year

In Victoria, land tax is computed using the rate and the total taxable value or site value of your land holdings. Your place of residence is excluded. The total taxable value may be affected by an increase in the rate in 2017. The 2016 council site valuation will be used as the basis for your 2018 land tax assessment.

You will be required to pay land tax when the total value of all of your properties in Victoria on or before December 31 is equal to or more than the threshold of $250,000 in a calendar year. In other words, the total value of all your property that can be taxed by midnight of December 31 will determine whether or not there is a need for an assessment.

In general, land tax assessments are issued between late January and late May every year. The land tax assessment should have all your land properties in Victoria that you owned as of midnight of December 31 of the previous year. Make sure to check the assessment and confirm that all the details are correct.

As well as your home, primary production land is exempt, along with properties that are used by charity groups. But if you rent out your main place of residence or there is a change of address, the property will no longer be exempted from land tax.

You can use a land tax calculator to get an estimate of your land tax. If applicable, the absentee owner surcharge will be included. To calculate the land tax, you need details such as the year your estimated land tax is for, total value of all the taxable land that you own as of midnight of December 31, and absentee owner status. Make sure to exclude the value of your home or primary production land.

Do you have other ideas when it comes to land tax in Australia? Share your insights in the comments section.

About the author  ⁄ Marxa Dillan

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