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Property update: 2013 Land Tax Assessments — Land tax likely to rise significantly

Mar 5, 2013

The State Revenue Office (SRO) has recently begun issuing Land Tax assessments for the 2013 year. These assessments are based on the site value of the land as at 1 January 2012.

The site value of land is determined every 2 years by the relevant local Council or the Valuer General. Council rate notices included the new values in their 2012/2013 council rate assessments. In many cases, the valuations shown in those notices are considerably higher than the previous valuations, notwithstanding property market conditions over the last few years in Melbourne.

Although the new valuations affect council rates as well, the greatest impact on property owners will be in respect of their liability for land tax.

The site values of some CBD and Southbank properties have increased between 30% and 100% in the 1 January 2012 valuations which will result in an exponential increase in land tax to landowners.

Owners should carefully review their assessments to determine whether there are any errors or whether there is a potential to object to the assessment on the basis of the valuation used.

Tax payers have 60 days from the date of the assessment to object to the assessment.

More information

If you require any assistance in lodging an objection or disputing a valuation or would like a referral to a valuer, please contact a member of our Property team on (03) 8600 8888.

Note: This update is a guide only and is not intended to constitute legal advice.