Each year between January and June, the State Revenue Office (SRO) sends land tax assessments to property owners in Victoria. If you own taxable land as at 31 December of the previous year, you’re likely to receive one. Land is taxable if it is not used for an exempt purpose, such as your principal place of residence or for primary production.

Here’s what to know about your assessment and how to make sure it’s accurate.

What is land tax and how is it calculated?

Land tax is an annual tax based on the site value of your land, excluding buildings or other improvements. The Valuer-General sets this value as at 1 January each year, and it is also used by local councils to determine your rates.

The amount of tax you owe depends on the combined site value of all taxable land you own. As the value increases, so does the rate of tax. Additional charges may apply for land held in trust, or if you are classified as an absentee owner.

What your assessment includes

Your land tax assessment outlines:

• All Victorian land you owned on 31 December of the previous year, including jointly owned and trust-held properties
• The site (taxable) value of each property
• Any applicable exemptions, such as your principal place of residence
• Your share of tax for jointly owned land
• Codes explaining how each property is treated for land tax purposes.

It’s important to check that:

• Your postal and residential addresses are correct
• All land you owned is listed
• Your home is marked as your principal place of residence (if applicable)
• Exemptions are correctly applied or not incorrectly applied
• For land held on trust, that the land held as a trustee is appropriately recorded and that the trust surcharge rate of land tax has been applied.

You must notify the SRO of any issues within 60 days to avoid penalties. Most updates can be made via the My Land Tax portal.

Types of assessments

Depending on how you own land, you may receive different types of assessments:

Individual assessments
For land owned solely by you or a company.

Joint assessments
For land owned with others. Each group of joint owners is assessed separately.

Trust assessments
For land held in trust, assessed in the name of the trustee and specifying the relevant trust it acts as trustee for.

Group assessments
For related corporations, which are assessed on their combined holdings.

You might receive more than one assessment, but deductions are applied to ensure you don’t pay tax twice on the same land.

If you receive more than one individual assessment for land you own alone, contact the SRO immediately.

Vacant Residential Land Tax

This is a separate tax, and you should receive a distinct assessment if you own vacant residential land. You are required to notify the SRO if you own vacant residential land. Generally, this includes land that has a residence which has been unoccupied for six months or more in a calendar year, although vacant land without a residence can still be subject to Vacant Residential Land Tax in some circumstances.

Land which is exempt for land tax is also exempt for Vacant Residential Land Tax. Other exemptions specific to Vacant Residential Land Tax are also available. Please see our related post for further information on the Vacant Residential Land Tax.

Information included in your land tax assessment

Your assessment may include a “proportional tax” amount for each property. This is calculated based on the property’s share of your total land tax. There’s also a “single holding tax” amount, showing what you’d pay if that property were your only taxable land.

Each property may have a code that indicates how it is treated for land tax. Some examples include:

• PPR: Principal place of residence exemption
• PPL: Primary production land exemption
• SH: Single holding
• TS: Trust surcharge

A full list of codes is available on the SRO website and in your assessment notice.

What to do if your assessment is incorrect

If you spot an error, you can update your details online for common issues like:

• Updating your contact information
• Correcting your principal place of residence
• Adding or removing land
• Applying for an exemption

For more complex issues, such as multiple assessments or incorrect exemptions, you’ll need to contact the SRO directly.

Objections and disputes

If you disagree with the site value of your land, you can lodge an objection within two months of receiving your assessment. This can be done online. Even while your objection is being reviewed, you must still pay your land tax in full by the due date to avoid interest charges. If successful, you’ll receive a refund with interest.

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Land tax can be complex, especially when trusts, joint ownership, or exemptions are involved. Reviewing your assessment carefully each year helps ensure accuracy and prevents unnecessary penalties.

If you’re unsure about your obligations or need help navigating your land tax assessment, please reach out to our team.