Changes taking effect on 1 July 2026

Here is a summary of the Victorian taxation changes taking effect on 1 July 2026. Our website has been updated to reflect the changes.

Emergency services and volunteers fund

The fixed charge for residential properties (including vacant residential) will increase from $136 to $139.

The fixed charge for non-residential properties will increase from $275 to $282.

Learn more about the emergency services and volunteers fund

Growth areas infrastructure contribution

The growth areas infrastructure contribution rates for the 2026–27 financial year will be:

• $122,260 per hectare for type A land ($118,830 in 2025–26)
• $145,220 per hectare for types B-1, B-2 and C land ($141,150 in 2025–26).

The growth areas infrastructure contribution threshold for excluded building will increase from $1,485,650 to $1,528,532.

Interest payable on deferred growth areas infrastructure contribution will increase from 5.0871% to 5.6063%.

Learn more about the growth areas infrastructure contribution

Metropolitan planning levy

The metropolitan planning levy threshold will increase from $1,311,000 to $1,344,000.

Learn more about the metropolitan planning levy

Commercial passenger vehicle service levy

The commercial passenger vehicle service levy rate will increase from $1.20 per ride to $1.25 per ride.

Learn more about the commercial passenger vehicle service levy

Insurance

From 1 July 2024, duty on certain business insurance premiums is gradually being abolished over a 10-year period.

On 1 July 2026, duty on business insurance premiums will reduce from 8% to 7%.

Learn more about the abolition of duty on business insurance premiums

Motor vehicle duty

The motor vehicle duty luxury car threshold will increase from $80,567 to $80,809.

Learn more about motor vehicle duty

Wages exempt from payroll tax

The exempt amount for accommodation allowances will increase from $323 per night to $328.85 per night.

Learn more about wages exempt from payroll tax

Motor vehicle duty – drive-away deals

The 2026–27 guidelines, used by licensed motor car traders to calculate the dutiable value of motor vehicles sold on a ‘drive-away deal’ basis, have been published on our website. These guidelines apply from 1 July 2026.

Fees and interest rates

• The interest rate payable on a tax default will increase from 11.78% to 12.43%. This is calculated by adding the market rate of 4.43% in 2026–27 (3.78% in 2025–26) and premium rate of 8%.
• The Freedom of Information application fee will increase from $33.60 to $34.50.
• The property clearance certificate fee will increase from $19.50 to $20.

Victorian Homebuyer Fund thresholds

Income thresholds for the Victorian Homebuyer Fund – which is now closed to new participants – for 2026–27 are:

• $151,265 for single participants
• $242,025 for joint participants
• $242,025 for single parent participants.