‍Quick takeaway: Many Melbourne buyers will receive their first‐ever land‑tax bill in 2025. Understand the new brackets now, or risk blowing next year’s cash‑flow.

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Most time‑poor professionals I meet still assume land tax kicks in only once they own “a big portfolio.” Not anymore. The State’s COVID‑19 Debt Repayment Plan lowered the general threshold to $50 000 site value and attached two flat surcharges, catching holiday shacks, modest city apartments, even vacant blocks you bought for the kids’ future.

A recent client, let’s call him Michael, a project‑manager with zero spare hours, discovered his $180 000 Bendigo investment block, previously tax‑free, now attracts a $975 annual charge. We modelled the hit, re‑sequenced his renovation timeline, and sold an under‑performing metro unit to neutralise the levy. Early intel saved him five figures over the next decade.

Below is the distilled guidance I give every client before they upgrade, downsize or invest in Victoria.

1 New general rates at a glance (2024‑2033)

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Aggregated site value @ 31 DecLand‑tax payable*< $50 000Nil$50 000 – < $100 000$500 flat surcharge$100 000 – < $300 000$975 flat surcharge$300 000 – < $600 000$1 350 + 0.30 % on excess over $300 000$600 000 – < $1 000 000$2 250 + 0.60 % on excess over $600 000$1 000 000 – < $1 800 000$4 650 + 0.90 % on excess over $1 000 000$1 800 000 – < $3 000 000$11 850 + 1.65 % on excess over $1 800 000≥ $3 000 000$31 650 + 2.65 % on excess over $3 000 000

*Trusts start at $25 000 and bear higher rates; absentee owners pay an extra 4 % surcharge. All COVID‑levy settings expire 30 June 2033.

2 Why Treasury rewrote the rules

• Threshold slashed – From $300 000 down to $50 000 (or $25 000 in a trust).
• Flat “COVID levy” – $500 and $975 catch small holdings quickly.
• Marginal rates +0.10 ppt – Every bracket above $300 000 nudged up.
• Revenue haul – Expected to raise ≈ $5.65 billion in four years - roughly 20 % of all land‑tax receipts.

3 What this means for your Melbourne strategy

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ScenarioStrategic watch‑pointUpgrader selling firstA December settlement can hand you a full‑year bill on the new home before you’ve even moved in. Negotiate settlement for January if possible.Investor adding a unitModel the aggregate site value—one extra car‑park lot can tip you into the 0.30 % bracket.Holiday‑home buyerCheck if the land’s unimproved value already sits above $50 000; many coastal blocks now do.Trust restructureThreshold halves to $25 000. Crunch numbers before moving titles into a trust “for asset protection.”

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Unsure which bracket you’ll land in? Book clarity call - no pitch, just straight numbers.

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4 Worked examples (no absentee surcharge)

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ProfileSite value2023 tax2024‑25 taxImpactStarter investor$150 000$0$975+ $975Mid‑tier portfolio$1 200 000$4 575$6 450+ $1 875High‑end landholder$4 000 000$53 475$58 150+ $4 675

(Figures use pre‑2024 schedule for the 2023 column; trusts/absentees will differ.)

5 Action checklist before you sign a contract

1. Locate the site‑value line on your rates notice (ignore capital‑improved value).
2. Aggregate everything - spouse, company, trust. The SRO sees one owner across entities.
3. Run the SRO calculator including the 4 % absentee levy if you live offshore.
4. Time settlement smartly - a one‑month shift can postpone liability for a year.
5. Budget for instalments - first bill often lands mid‑February.

Bottom line

Victorian land tax is no longer just a “big developer problem.” With a $50 000 threshold, ordinary buyers are on the hook. Build the levy into your feasibility, negotiate timing clauses, and - if the numbers still work - press ahead with clear eyes.

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If you want your next deal analysed, speak with a Melbourne buyers advocate today.

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