COVID Debt Levy on Land Holdings Victoria: When Does It End?

The COVID Debt Levy on land holdings in Victoria is legislated to apply until 30 June 2033. That is the date in the Budget Papers, and the 2026-27 Victorian Budget, handed down on 5 May 2026, did not announce any change to it. If you own land in Victoria above the land tax threshold and you have been waiting for an early sunset, the Budget did not deliver one. Below is what the Budget said, what it did not say, and where to check the current rates.

The short answer: 30 June 2033

The COVID Debt Levy on land holdings is legislated to apply until 30 June 2033. That end date is set out on page 175 of Budget Paper 5 (Statement of Finances) released with the 2026-27 Victorian Budget. The Budget did not bring this date forward, did not push it back, and did not signal a review. If you are running cash-flow forecasts on a Victorian property holding, 30 June 2033 is the date to plan around. (Source: BP5 p.175.)

What is the COVID Debt Levy on land holdings?

The COVID Debt Levy on land holdings is a temporary additional charge that sits on top of standard Victorian land tax. It was introduced as part of the COVID Debt Repayment Plan, which the State Government uses to recover borrowings made during the pandemic. The Budget Papers describe it as a levy that applies until 30 June 2033, after which it ceases. The Budget Papers do not republish the rate structure. The current rates and thresholds are administered and published by the State Revenue Office at sro.vic.gov.au. (Source: BP5 p.175.)

The 2026-27 Budget: no early sunset

The 2026-27 Budget did not announce any change to the COVID Debt Levy on land holdings. It was not extended, not shortened, and not amended. The legislated end date of 30 June 2033 remains the operative date. There are no new exemptions, no new thresholds, and no new transitional rules in this Budget. The absence of change is itself the news for property owners: the existing settings continue exactly as they have been since the levy was introduced. (Source: BP5 Ch.4.)

Forecast revenue from the COVID Debt Levy

Budget Paper 5 sets out how much the State expects the COVID Debt Levy on land holdings to raise. Forecast revenue is $1.2 billion in 2026-27, growing by an average 4.9 per cent a year through the forward estimates. Those numbers reflect the legislated rate structure applied to the Victorian land tax base, including the effect of the 2025 Valuer-General Victoria valuations that feed into 2026-27 assessments. (Source: BP5 p.175.)

Who pays the COVID Debt Levy

The Budget Papers describe the COVID Debt Levy on land holdings as a charge applying to land holdings in Victoria above the land tax threshold. The Budget Papers do not republish the full list of who is in scope, who is exempt, or how trusts and joint ownership are treated. Those rules are administered by the State Revenue Office. If you are not sure whether your property is in scope, the State Revenue Office at sro.vic.gov.au is the authoritative source. (Source: BP5 p.175.)

How the COVID Debt Levy interacts with land tax

The COVID Debt Levy on land holdings sits alongside, not instead of, ordinary Victorian land tax. The Budget forecasts both separately: land tax revenue is forecast at $6.5 billion in 2026-27, and the COVID Debt Levy on land holdings is forecast at $1.2 billion in 2026-27. Property owners above the land tax threshold receive assessments that reflect both charges. The Budget did not change the underlying land tax thresholds or rates in 2026-27. (Source: BP5 p.169 and p.175.)

Frequently asked questions

When does the COVID Debt Levy end in Victoria? The COVID Debt Levy on land holdings is legislated to apply until 30 June 2033. (BP5 p.175.)

Did the COVID Debt Levy change in the 2026 Victorian Budget? No. The 2026-27 Budget did not announce any change to the COVID Debt Levy on land holdings. The legislated end date of 30 June 2033 continues unchanged. (BP5 p.175.)

Who pays the COVID Debt Levy? The Budget Papers describe the levy as applying to Victorian land holdings above the land tax threshold. Detailed eligibility, thresholds and rate amounts are administered by the State Revenue Office at sro.vic.gov.au. (BP5 p.175.)

Is the COVID Debt Levy the same as land tax? No. The COVID Debt Levy is a separate, temporary charge that sits on top of ordinary Victorian land tax. The Budget forecasts the two streams separately. (BP5 p.169 and p.175.)

Is there a separate COVID Debt Levy on businesses? Yes. There is also a COVID Debt Levy on payroll, which applies to businesses with $10 million or more in Victorian wages. It is also legislated to apply until 30 June 2033. It is a different levy from the one on land holdings. (BP5 p.171.)

Talk to Tick Box before your next purchase or sale

If you are buying or selling Victorian land in 2026-27, the COVID Debt Levy on land holdings will continue to be part of your land tax assessment until 30 June 2033. Tick Box Conveyancing handles house conveyancing and commercial conveyancing across Victoria, with adjustments at settlement that account for current land tax and levy positions. Get in touch before you sign your next contract. Your Journey, Our Expertise.

For more from the 2026-27 Budget, see our Victorian Budget 2026-27 property guide, the land tax deep-dive, and the vacant residential land tax guide.

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This article summarises the Victorian Budget 2026-27 as published on 5 May 2026. It is general information, not legal advice. For matters specific to your transaction, contact Tick Box Conveyancing.