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Tax slug for Victorians with investment properties or holiday homes

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Victorians with second homes or investment properties will pay a new flat rate tax of up to $975, plus an additional levy on the value of their land from January 1, 2024.

The tax-free threshold for general land tax rates for properties which are not a principal place of residence will decrease from $300,000 to $50,000.

Treasurer Tim Pallas said the levy “will apply primarily to those who own a second property or multiple properties” and said the family home will remain exempt. “The COVID debt levy is targeted at those with the greatest ability to pay following the pandemic,” Pallas said. Pallas denied that the land tax increase would have an adverse impact on rent and said the cost was “relatively small on landlords in the grand scheme of things”.

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