Can I appeal or object to a land tax assessment?
What happens if I get a land tax assessment or a vacant residential land tax assessment that I do not agree with? Can I appeal or object a land tax assessment or vacant residential land tax assessment?
The answer is, yes – you can object to a land tax assessment or vacant residential land assessment.
Typically, there are two types of objection:
Valuation objections – I have been assessed to land tax or vacant residential land tax, but the land value is too high.
Technical objections – I should not have been assessed to land tax or vacant residential land tax.
Both forms of objection go through the State Revenue Office, but they are dealt with in different manners.
Valuation of land
In Victoria, the Valuation of Land Act 1960 (Vic) provides for the valuer-general to determine the value of land each year at 1 January for rates, land tax and other purposes.
There are two values determined by the valuer-general:
Capital improved value; and
Site value.
Rates are calculated on “capital improved value”, which takes into account the value of buildings and other “improvements on land”. A land value at 1 January is first used for rates issued by your local government after July of that year. That rates notice will notify both your capital improved value and site value.
The “site value” is the value of the land if sold on the assumption that any “improvements” had not been made. The site value is used for land tax purposes.
For example, an empty residential block in Melbourne should have a site value roughly equal to its capital improved value and close its market value. However, the same lot with a house built on it should have a site value less than its capital improved value which should be around its market value.
The site value is used for the value of land held at 31 December in the year of valuation for land tax assessments issued in the following year.
For example, land tax assessments issued in 2026 will use land values as at 1 January 2025.
Valuation objections
As land values are notified typically with the rates notice issued after July as well as used for land tax assessments issued early in the next calendar year, there are technically two opportunities to object to a site value. Most taxpayers wait, however, until the land tax assessment is issued to object.
A valuation objections must be lodged within 2 months after a land tax assessment is issued (under section 18 of the Valuation of Land Act 1960 (Vic). While the objection is made to the State Revenue Office, it is passed onto the valuer-general to determine.
Typically, a valuation objection is made on the grounds that the land value is too low and requires evidence to support the suggested land value such as a professional valuation or other relevant external evidence (such as recent market sales).
Technical objections
Like valuation objections, these are made to the State Revenue Office and must be lodged within 60 days of a disputed assessment.
Unlike land value objections, however, these are determined by the State Revenue Office.
Typical grounds for a technical objection include:
My house is my principal place of residence, but has been assessed to land tax;
A farm should have the primary production exemption applied;
The holiday home exemption for vacant residential land tax should apply; or
Part of my commercial building is used by a charity and should be exempt.
Objections can also be made where penalties and interest are applied to a land tax assessment after an investigation.
Conclusion
There are many grounds for an objection to land tax or vacant residential land tax. We have not considered all of them here – but if you do get a land tax assessment or a vacant residential land tax assessment that you do not agree with, please contact your trusted advisor who can help you with an objection or appeal.
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Please contact us for assistance on any land tax, vacant residential land tax, payroll tax, stamp duty or other State Tax issues.
Phil Broderick
Principal
T +61 3 9611 0163 l M +61 419 512 801
E pbroderick@sladen.com.au
Nicholas Clifton
Principal Lawyer
T +61 3 9611 0154 | M +61 401 150 955
E nclifton@sladen.com.au
