As we step into the 2024 calendar year, Victorian landowners and investors are facing a new set of rules governing land tax. 

This tax, vital to the state’s economy, is undergoing significant revisions. 

In this guide, we’ll delve into the intricacies of these changes, focusing on the introduction of the COVID-19 debt temporary land tax surcharge and its implications. 

Whether you’re a seasoned property investor or a first-time landowner, understanding these updates is crucial to effectively navigating the evolving landscape of Victorian property taxation.

Navigating the New Terrain: 2024’s Land Tax Adjustments

Starting from January 1, 2024, Victorian landowners will see the introduction of the COVID-19 debt temporary land tax surcharge. This surcharge, slated to last for a decade, represents a significant shift in the state’s approach to land taxation. 

It’s important to note that properties traditionally exempt from land tax, such as your primary residence, will continue to enjoy this status under the new system. This means the value of these exempt properties will not contribute to your total landholdings calculation for the purpose of this surcharge.

This temporary measure – which will last for a minimum of 10 years – is designed to assist in mitigating the economic impacts of the pandemic, highlighting the government’s commitment to balanced and responsible fiscal recovery. 

For landowners, understanding the specifics of these changes is key to ensuring compliance and optimal financial planning in the face of this new tax landscape.

A table showing the 2024 land tax rates

A table shownwing 2024 Land Tax Trust Surcharge Rates

The Changing Landscape of Victorian Land Tax

In 2024, the land tax structure in Victoria will undergo significant changes. The new surcharge applies to different property value brackets, introducing additional charges for landowners. For taxable landholdings valued between $50,000 and $100,000, a flat surcharge of $500 will be imposed. Landholdings between $100,000 and $300,000 will attract a $975 flat surcharge. For properties exceeding $300,000 in value, the surcharge remains at $975, but with an added increase of 0.10 percentage points in the land tax rate.

Trusts are not exempt from these changes. Landholdings within trusts valued between $50,000 and $100,000 will also face a $500 flat surcharge. For holdings between $100,000 and $250,000, the surcharge is $975. Beyond $250,000, trust landholdings will incur the same $975 surcharge and an additional 0.10 percentage point increase in the land tax rate. These changes reflect a strategic approach to address the fiscal challenges post-COVID-19, balancing the need for revenue generation with the impact on landowners.

Implications for Property Owners and Investors

The 2024 land tax adjustments present varied implications for property owners and investors in Victoria. Owners of apartments and industrial properties, often attracted to these investments due to historically lower land values, now face a significant shift. The new surcharge system means that even properties with land values as low as $50,000 will be subject to land tax. This change is particularly impactful for commercial buyers and property investors who have traditionally navigated the landscape with strategic acquisitions.

For instance, an apartment valued at $700,000 with a land value of $200,000, previously unaffected by land tax, will now incur additional charges. Similarly, industrial properties, previously chosen for their low land valuations, will also fall under the new tax regime. This shift could lead to a reconsideration of investment strategies and portfolio compositions.

These changes are not just numerical adjustments; they represent a fundamental shift in the property investment landscape in Victoria. With these new surcharges, we might see a reevaluation of property values, rental rates, and overall investment viability. As we navigate this new terrain, understanding the specific impacts on different property types and values becomes crucial for informed decision-making in the property market.

Strategies for Navigating the New Victorian Land Tax Landscape in 2024

As Victorian landowners and investors face the revised land tax regime, strategic adaptation becomes paramount. Adjusting to these new rates might involve a thorough review of current property portfolios. For some, this could mean divesting certain assets, while others might consider consolidating holdings to optimize tax implications. Land tax planning and restructuring should be approached with careful consideration, ideally with expert guidance to navigate the nuances of these changes.

Effective budgeting and financial planning are more critical than ever. Property owners should forecast the long-term financial impact of these changes on their holdings. This could include reassessing rental income projections and revising financial models to account for the increased tax burden. For those with extensive portfolios, diversification strategies might also need reevaluation in light of these shifts.

Long-Term Outlook and Predictions

The 2024 land tax changes are likely to have a ripple effect across the Victorian property market. One possible outcome is an increase in rental prices as property owners seek to offset the higher tax costs. This could, in turn, impact the affordability of housing and commercial spaces.

From an investment perspective, these changes might steer investors towards properties with lower land values or even encourage investment outside of Victoria. Additionally, the government’s rationale behind these changes – primarily to address COVID-19 induced fiscal challenges – may lead to further legislative adjustments in the future, depending on economic recovery progress.

It’s essential for property owners and investors to stay attuned to these trends and potential legislative evolutions. By doing so, they can make informed decisions and adapt their strategies accordingly in this dynamic and evolving tax environment.

Embracing Change and Moving Forward

The 2024 Victorian Land Tax changes mark a significant shift in property taxation, reflecting the state’s efforts to recover economically from the pandemic. Key takeaways include the introduction of a COVID-19 debt temporary land tax surcharge, revised tax rates and surcharges across various land value brackets, and broader implications for different types of property owners and investors. 

As we navigate these changes, staying informed and proactive is essential.

For detailed advice and support tailored to your unique situation, Tick Box Conveyancing is here to help. We encourage you to reach out to us with any questions or concerns about Land Tax in 2024 and beyond. 

Our team of experts is equipped to guide you through these changes, ensuring you are well-prepared for the evolving property landscape.


Please note that the information provided in this article is of a general nature and is not intended to constitute professional advice. Land tax laws and regulations can be complex, and their application can vary significantly based on individual circumstances. We strongly recommend seeking qualified professional advice to understand how the 2024 Victorian Land Tax changes may affect your specific land tax obligations and financial situation. This article is not a substitute for such advice, and reliance on any information provided here is solely at your own risk. For personalised assistance, don’t hesitate to get in touch with a professional adviser or legal expert.