New regulations on property tax in Victoria, Australia

Starting from January 1, 2024, the threshold for land tax exemption in Victoria will be reduced from 300,000 Australian dollars to 50,000 Australian dollars. This means that even apartments purchased by overseas buyers will need to start paying land tax.

For apartments valued at less than one million Australian dollars, it is estimated that about 1,000 to 2,000 Australian dollars in land tax will be paid annually.

Specifically, for investment properties with a land value ranging from 50,000 to 100,000 Australian dollars, an additional 500 Australian dollars in land tax is required each year.

Investment properties with a land value ranging from 100,000 to 300,000 Australian dollars require an additional annual payment of 975 Australian dollars.

For investment properties with a land value exceeding 300,000 Australian dollars, in addition to the 975 Australian dollar land tax, an additional tax of 0.1% of the land value is also required. For instance, a property with a land value of one million needs to pay an additional 1,975 Australian dollars in tax each year.

This policy will affect approximately 860,000 Victorians and the government expects to bring in an additional tax revenue of over 4 billion Australian dollars. However, the government denies that this move will have a negative impact on rents.