Victoria to hike land tax, stamp duty as part of budget measures

Shot of Victoria skyline.

Victorian Treasurer Tim Pallas has announced a suite of measures ahead of the release of this week’s state budget, including plans to increase the land tax for taxable properties worth more than $1.8 million.

The changes hope to strike a balance “between those wanting to buy their first property and large property investors who continue to profit from soaring property values."

Once in place, the land tax will increase by 0.25 percent for taxable land holdings valued between $1.8 million and $3 million. Taxable land holdings higher than $3 million will also increase by 0.30 percent.

The Treasurer said that the new measures will only be felt by a fraction of the 10 percent of Victorians who pay land tax, and estimates they will bring in more than $380 million a year.

“All up, we invested $49 billion in the last budget to support families and businesses through the pandemic using our balance sheet,” Pallas said.

“Now, we're taking all the hard and necessary actions to make our tax system fairer and more progressive.”

But the news has been met with fierce opposition. Real Estate Institute of Victoria president Leah Canlan said the changes would deal a significant blow to an already struggling property sector.

RELATED: 2021-22 Federal Budget leaves renters out to dry


"There's high vacancy, there's lots of unpaid rent and this is just another effective tax that those property investors now have to manage,” she said.

"We don't want to see Victoria become the state no one wants to invest in and with additional taxes for the property sector, that's where we're heading."

Along with the changes to the land tax, the Victoria government will introduce a premium stamp duty rate for property transactions exceeding $2 million. 

This will see stamp duty payable increase to $110,000, plus 6.5 percent of the dutiable value in excess of $2 million.

For information on property and lending trends, head over to our home loan statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo - last updated 4 March 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Home Fixed Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.80% p.a.
    fixed 3 years
    5.91% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

    Compare
    Details
  • Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details
  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

    Compare
    Details