When do you have to pay land tax in Victoria?

If you own investment property, commercial premises, a holiday home or even a vacant block in Victoria, land tax is part of the annual budget. Yet many people still ask: "When do I actually have to pay it?" The short answer is you must pay by the due date printed on your State Revenue Office (SRO) assessment notice and interest starts ticking the day after that date if you miss the deadline. In this guide we spell out how that date is set, the new thresholds and rates that now apply under the COVID Debt Repayment Plan, and the practical steps you can take to stay on top of your bill.

How the Assessment Date Sets the Scene

Land tax in Victoria is a calendar year tax. The SRO takes a snapshot of every parcel you own at midnight on 31 December. Whatever you hold at that point forms the basis for the following year's bill it does not matter if you sell on 2 January or settle halfway through the year. Crucially, the valuation used is the site value (the unimproved land component) supplied by the Valuer General.

When Does the Bill Arrive?

Assessment notices generally land in letterboxes or email inboxes between January and June each year. The timing depends on how quickly valuations are processed and whether the SRO needs extra information from you. If you have registered for the My Land Tax portal you can often view the notice online a little earlier.

What Decides the Payment Deadline?

Your individual notice shows a "pay in full" date. The SRO FAQ puts it bluntly: "Your assessment will outline when you have to pay your land tax." Because the issue dates vary, the due dates vary too. That is why one neighbour might have until late April while another has until early June. If you ignore the date, daily penalty interest accrues and debt recovery action can follow.

Paying in a Lump Sum

You can settle the bill in one go using BPAY, credit/debit card or over the counter at Australia Post or Westpac (if listed on the notice). Be aware that card payments attract a small processing fee, whereas BPAY from a cheque or savings account does not.

Paying by Instalments

If cash flow is tight, consider AutoPay. Eligible owners can stretch current year assessments over or up to 38 weeks, choosing fortnightly, monthly or four equal instalments. The schedule must be set up every year it is not automatic and you must do so before the "pay in full" date on your notice.

The New Thresholds and Rates from 2024 Onwards

The Victorian Government introduced a temporary Debt Repayment Plan that runs from the 2024 to 2033 land tax years. The headline changes are:

The tax-free threshold for individuals fell from $250,000 to $50,000. For trusts it fell to $25,000.
A flat $500 surcharge now applies to holdings between $50,000 and $100,000.
A $975 surcharge applies to holdings between $100,000 and $300,000 (or $250,000 for trusts).
Above those bands the ordinary marginal rates still apply, but each band is 0.1 percentage points higher than pre-2024 levels.

In practical terms, many Melburnians who previously paid nothing are receiving land tax bills for the first time in 2025.

Current Rate Table (General Owners)

Total Taxable Value | Tax Payable (from 2024)

Up to $50,000 | Nil

$50,000 – < $100,000 | $500 flat charge

$100,000 – < $300,000 | $975 flat charge

$300,000 – < $600,000 | $1,350 plus 0.3% of excess

$600,000 – < $1,000,000 | $2,250 plus 0.6% of excess

$1,000,000 – < $1,800,000 | $4,650 plus 0.9% of excess

$1,800,000 – < $3,000,000 | $11,850 plus 1.65% of excess

$3 million + | $31,650 plus 2.65% of excess

Source: SRO "Land tax current rates" table

Who Must Pay and Who Is Exempt?

You pay land tax if the aggregate value of your non exempt land exceeds the threshold. The following land is exempt:

Your principal place of residence (PPR).
Primary production land, e.g. working farms.
Land used for charitable purposes.

Everything else residential rentals, commercial sites, holiday homes, vacant blocks is potentially taxable.

Absentee Owner Surcharge

Overseas owners pay an additional 4% surcharge on top of the above rates from the 2024 year onwards.

Vacant Residential Land Tax

From 1 January 2025 the separate vacant residential land tax expands from inner and middle Melbourne to all of Victoria. A property can therefore be subject to both land tax and the vacant home levy if it is left empty for six months in a calendar year.

Valuations, Objections and Errors

The SRO emphasises that your 2025 bill uses valuations determined as at 1 January 2024. If you believe the site value is wrong you have 60 days from the notice date to object, and you must still pay (or arrange instalments) while the objection is processed.

Practical Tips to Stay on Top of Land Tax

Register for My Land Tax so you receive assessments electronically and can view them any time.
Diary the due date the day the notice arrives; set calendar reminders two weeks beforehand.
Use AutoPay if you prefer smaller, regular payments but remember to set it up afresh every year.
Budget the surcharge: if your holdings sit just above $50,000, factor in the flat $500 each January.
Check exemptions annually (e.g. if a former rental becomes your new PPR, apply to remove that property from your assessment).
Inform your conveyancer early when selling; the vendor usually covers the full year's land tax and may adjust the price accordingly.

What Happens If You Do Not Pay on Time?

The SRO charges daily interest on overdue land tax, calculated at the market dominated penalty rate, and can issue garnishee notices to employers or banks. Ultimately, it may register a charge over the property. Even a small bill left unpaid can snowball, so act quickly seek a payment plan rather than ignore reminders.

Key Takeaways for 2025

Your landholding position at 31 December 2024 dictates the 2025 bill.
Expect the notice anytime between January and June.
Pay in full or start AutoPay by the due date shown on the notice.
Thresholds have dropped to $50k for individuals and $25k for trusts for the next decade, pulling thousands of new taxpayers into the system.
Flat surcharges ($500 or $975) now sit on top of the ordinary marginal scale.
Interest is harsh, so mark the calendar and pay or organise instalments promptly.

Conclusion: Get Tailored Advice Before You Sign or Sell

Land tax is no longer a niche concern for large-scale investors. With the lower thresholds now in force, anyone who owns even a modest second property in Melbourne can face an annual bill. Understanding the assessment timeline and payment options is the best way to avoid unpleasant surprises and penalty interest. If you are about to buy, sell or simply want to know where you stand, professional guidance is invaluable.

For personalised advice on your land-tax position, help interpreting your assessment or a free Section 32 contract review, contact the friendly team at Pearson Chambers Conveyancing today. Phone 03 9969 2405 or email contact@pearsonchambers.com.au. We are here to make your property journey smoother and ensure you never miss a critical deadline.