Land tax in Victoria changed substantially in 2024. The general-rate threshold dropped from $300,000 to $50,000, the absentee owner surcharge rose to 4%, and the COVID Debt Repayment Levy added a fixed $500 plus 0.1% on aggregated landholdings. Multi-property buyers face dramatically higher annual costs than the headlines suggest. The aggregation rules — adding up all Victorian land you own — mean a buyer who is comfortable on one property can be financially crushed by adding a second.
This guide covers the 2024 land tax framework, the aggregation rules, the major surcharges, and the planning approaches that materially reduce buyer-side land tax.
The 2024 land tax framework
| Aggregated taxable value | Pre-2024 base land tax | 2024+ base + COVID levy |
|---|---|---|
| Up to $50,000 | $0 | $0 |
| $50,000–$100,000 | $0 | $500 |
| $100,000–$300,000 | $0 | $975 |
| $300,000–$600,000 | $375 + 0.2% above $300k | $1,275 + 0.3% above $300k |
| $600,000–$1m | $975 + 0.5% above $600k | $2,175 + 0.6% above $600k |
| $1m–$1.8m | $2,975 + 0.8% above $1m | $4,575 + 0.9% above $1m |
| $1.8m–$3m | $9,375 + 1.55% above $1.8m | $11,775 + 1.65% above $1.8m |
| $3m+ | $28,125 + 2.55% above $3m | $31,575 + 2.65% above $3m |
The aggregation rule
Land tax is calculated on your total Victorian landholdings — not property by property. All taxable land owned by an entity is aggregated for the calculation.
Aggregation includes:
- Investment properties owned in your name
- Vacant land
- Holiday homes (subject to exemptions)
- Commercial land you own
Aggregation does NOT include:
- Your principal place of residence (exempt)
- Land owned by other entities (separate tax)
- Land used for primary production (PPL exemption)
- Charitable land
Surcharges that stack
Absentee Owner Surcharge (AOS)
Foreign-resident or absent-owner landholders pay an additional 4% on top of base land tax. The threshold is just $50,000. Effects:
- Apply if you live overseas for more than 6 months in any year
- Apply to most foreign-controlled companies and trusts
- Apply to discretionary trusts that could distribute to absent persons
- Compounds with base land tax
Vacant Residential Land Tax (VRLT)
Separate from base land tax — covered in our VRLT guide. 1%/2%/3% escalation. Stacks with base land tax and AOS.
Trust surcharge
Discretionary trusts pay land tax at higher rates than individuals. Trust surcharge starts at $25,000 of taxable land (vs $50,000 for individuals) and uses higher percentage rates throughout.
Real-world example — multi-property buyer
Single owner with main residence (exempt) plus two investment properties:
- Investment A — site value $650,000
- Investment B — site value $700,000
- Aggregated taxable value: $1,350,000
Annual land tax (2024+ rates):
- Base land tax (aggregated): $4,575 + 0.9% × ($1,350,000 − $1,000,000) = $4,575 + $3,150 = $7,725
- If owner is absent: AOS surcharge 4% × $1,350,000 = $54,000
- If both properties are vacant: VRLT additional ~$1,350,000 × 1% = $13,500
Total potential: $75,225 per year for an absent owner with vacant investments. The same investments owned by a resident owner who leases them: $7,725.
Buyer-side planning
- Get a land tax estimate before bidding. Use SRO calculator and aggregate with existing holdings.
- Time settlement carefully. Land tax is assessed on 31 December ownership. Buying 1 January means 12 months before next assessment.
- Confirm vendor land tax position. Vendor-side arrears should be settled at settlement.
- Get a Land Tax Clearance Certificate. Order from SRO before settlement. Confirms current and outstanding land tax.
- Understand entity choice. Trust vs personal vs company — different surcharges and thresholds. Specialist tax advice for $300k+ purchases.
- Avoid unintended absent-owner triggers. Long overseas trips, foreign-beneficiary trust deeds, foreign- controlled companies — all trigger AOS.
Settlement adjustments
At settlement, land tax is apportioned. The vendor pays for the portion of the calendar year they owned the property, and you pay from settlement to year-end. The Section 32 includes the most recent land tax assessment to support these calculations.
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