Land tax exemptions

The more common land tax exemptions include those for:

• your principal place of residence (PPR) including land where your PPR is being constructed or renovated, or land owned by an immediate family member of a person with a qualifying disability who uses that land as their PPR
• primary production land (PPL)
• charities
• rooming houses.

Holiday homes, regardless of whether they generate income, are not entitled to an exemption from land tax. 

Land that is exempt from land tax is also exempt from the vacant residential land tax, with 4 other specific exemptions. 

Other land tax exemptions relate to:

1. Crown land
2. Municipal and public land
3. Public statutory authority
4. Armed services personnel
5. Friendly societies
6. Sporting, outdoor recreation or outdoor cultural activities land owned by not-for-profit organisations
7. Land leased for outdoor sporting, recreational or cultural activities by members of the public
8. Health centres and services (not commercially operated businesses)
9. Residential care facilities and supported residential services
10. Residential services for people with disabilities
11. Retirement villages
12. Caravan parks
13. Mines
14. Agricultural shows and farm field machinery days
15. Not-for-profit clubs (excluding horse and harness racing clubs and private gender-exclusive and gender-restrictive clubs)
16. Land protected by a conservation covenant with Trust for Nature

A concessional tax rate is available for clubs promoting horse and harness racing. There is also a land tax concession and absentee owner surcharge exemption for build-to-rent developments. 

All exemptions are referenced in Part 4 of the Land Tax Act 2005.

1. Crown land

Land is exempt if it is owned by the Crown in the state of Victoria or vested in a Minister of the Crown.

However, where land is leased from the Crown, the lessee is the deemed owner and thus liable for land tax. Similarly, a licensee of Crown Land with any right to acquire the land is also liable for land tax.

The exception is where Crown land is leased under a retail premises lease.

Apply for this exemption

Write to us requesting an exemption under section 79 and provide the following information:

• customer number
• property address
• what the property is used for
• the date the use of this property commenced
• copy of lease.

2. Municipal and public land

Land is exempt if it is vested in a municipality. Land is also exempt if it is vested in trustees appointed under an act and held in trust for public or municipal purposes.

The exemption is not available if the land is leased to or occupied by anyone else for any business purposes. The exceptions to this are where the land is:

• leased or occupied by other municipalities, public statutory authorities, sporting, outdoor recreational or outdoor land used by cultural non-profit organisations, associations of armed services personnel or their dependents and friendly societies
• leased or occupied under an arrangement with a municipality to promote/assist a decentralised industry
• used or occupied for businesses carried on in movable market stalls for only a portion of the business week
• used exclusively for or in connection with a business conducted for the purpose of providing outdoor sporting or recreational facilities.

The exemption also does not apply if the land is vested in or held in trust for the purposes of trade unions, trades halls and trade union councils.

Apply for this exemption

Write to us requesting an exemption under section 81 and provide the following information:

• customer number
• property address
• what the property is used for
• the date the use of this property commenced
• copy of the lease
• details of the lessee.

3. Public statutory authorities

Land owned by a public statutory authority is exempt from land tax unless any of the following exclusions apply:

• if the land or part of it is leased or occupied for any business purposes except in the following circumstances:
  • if the land or part of it is leased or occupied by a public statutory authority, municipality, sporting, outdoor recreational or outdoor land used by cultural non-profit organisation, association of armed services personnel or their dependents and friendly societies
  • if the land or part of it is leased or occupied under an arrangement with a municipality to promote or assist a decentralised industry, or used or occupied for businesses carried on in movable market stalls for only a short period of the business week
• if the public statutory authority is excluded from this exemption by an order published in the Government Gazette; all lands owned by these types of public statutory authorities are taxable unless used exclusively as a park or public open space or another exemption applies.

Special land tax at the rate of 5% of the value of the land may apply if this exemption ceases.

However, special land tax will not be imposed if the taxable value of the land does not exceed $249,999 and the land is used exclusively by the owner or one or more of the joint owners as their principal place of residence.

Apply for this exemption

Write to us requesting an exemption under section 80 and provide the following information:

• customer number
• property address
• what the land is used for
• the date the use of this land commenced
• copy of the lease
• details of the lessee.

4. Armed services personnel

Land is exempt if it is vested in or held in trust for an association of armed services personnel or their dependents. It must be used by the members of the association for the purposes of the association.

The exemption may not apply if the land is leased or occupied by anyone for any business purposes except where it is leased or occupied by:

• other associations of armed services personnel or their dependents, public statutory authorities, municipalities, sporting, outdoor recreational or cultural non-profit organisations (outdoor land), and friendly societies
• under an arrangement with a municipality to promote or assist a decentralised industry.

Apply for this exemption

Write to us requesting an exemption under section 83 with the following information:

• customer number
• property address
• the date the use of this land commenced
• details of how the land is owned
• details of the principal activities of the association
• how the land is used by the association
• a copy of the association’s promotional material, including website or brochures
• a copy of the association’s constitution or rules
• a copy of the association’s most recent financial statements
• a copy of evidence of ownership or trust relationship in relation to land held for armed services personnel
• a copy of any relevant trust deed (if application)
• if the land is leased or occupied for any business purpose by a person or body other than the association, the details of that arrangement including a copy of any leases.

5. Friendly societies

Land is exempt if it is vested in or held in trust for a friendly society.

The exemption does not apply if the land is used for banking or insurance purposes, or if the land is leased or occupied by anyone for any business purposes except where it is leased or occupied:

• by other friendly societies, association of armed services personnel or their dependents, public statutory authorities, municipalities and sporting, outdoor recreational or outdoor cultural land owned by certain non-profit organisations
• under an arrangement with a municipality to promote/assist a decentralised industry.

Apply for this exemption

Write to us requesting an exemption under section 84 with the following information:

• customer number
• property address
• the date the use of this property commenced
• details of how the land is used or occupied, along with any supporting evidence
• a copy of certificate of your registration with ASIC or Australian Prudential Regulation Authority as a friendly society
• copy of the lease
• details of the lessee.

6. Sporting, outdoor recreation or outdoor cultural activities land owned by not-for-profit organisations

Land owned and used by a non-profit organisation primarily or substantially for sporting activities, outdoor recreational, outdoor cultural, or similar outdoor activities.

For the exemption to apply, the non-profit organisation’s primary objective needs to be carrying out these activities. Profits must be applied to promote the objectives of the body and the payment of dividends to members is prohibited. This exemption is not available to a body that promotes or controls horse racing, pony racing or harness racing in Victoria.

Special land tax at the rate of 5% of the value of the land may apply if this exemption ceases.

Apply for this exemption

Write to us requesting an exemption under section 72 with the following information:

• customer number
• property address
• the date the use of this land commenced
• the type of sporting, recreational, cultural or other activity conducted on the land
• a copy of:
  • the body’s constitution or memorandum and articles of association, or
  • the rules of association and the objectives for which the body has been established, and
  • the body’s most recent financial statement including asset registers, and
  • any other material showing the activities carried out on the land
• a copy of the lease agreement, if applicable.

7. Land leased for outdoor sporting, recreational or cultural activities 

Prior to the 2022 tax year, land is exempt if it is leased to a body to be used for outdoor sporting, outdoor recreational, outdoor cultural or similar outdoor activities, and is available for use for one or more of these activities by members of the public. For the exemption to apply, the proceeds from the lease must be applied exclusively for charitable purposes.

From the 2022 tax year, this exemption has been amended and forms part of the charity exemption. The land must be owned by a charitable institution and meet the exemption requirements to be exempt from land tax. 

Apply for this exemption

For an exemption for years prior to the 2022 land tax year, write to us requesting an exemption under section 71 of the LTA.

From the 2022 land tax year, write to us requesting an exemption under section 74(1)(c) of the LTA. In either case, please provide this information:

• customer number
• property address
• the date the use of this land commenced
• the type of sporting, recreational, cultural or other activity conducted on the land
• a copy of the lease agreement
• a copy of:
  • the body’s constitution or memorandum and articles of association, or
  • the rules of association and the objectives for which the body has been established, and
  • the body’s most recent financial statements including asset registers, and
  • any other material showing the activities carried out on the land
• evidence that proceeds are used for charitable purposes.

8. Health centres and services

Land is exempt if it is used exclusively for the purposes of:

• an ambulance service
• the Victorian Institute of Forensic Mental Health
• a community health centre registered with the Department of Health and Human Services
• a denominational hospital, public hospital or public health service identified and listed in the Health Services Act 1988

• a multi-purpose service identified in the Health Services Act 1988 or declared as such in a Victorian Government Gazette. 

Does not include commercially operated businesses. 

Apply for this exemption

Write to us requesting an exemption under section 74A with the following information:

• customer number
• property address
• name of the health service or centre
• what the land is used for
• the date the use of this land commenced
• if you are a registered community health centre, evidence of your current registration with the Department of Health and Human Services.

9. Residential care facilities and supported residential services

Land is exempt if it is occupied, or currently available for occupation, as a residential care facility that is operated by an approved provider or is a supported residential service. These terms are respectively defined in the Aged Care Act 1997 and the Supported Residential Services (Private Proprietors) Act 2010. If only part of the land is currently occupied, or available for occupation, as a residential care facility or supported residential service, the exemption will only apply to that part.

This exemption extends to land where the facility or service is being constructed until the earlier of the following:

• the date construction is completed
• two land tax years from the date construction commenced.

Apply for this exemption

Apply for this exemption via My Land Tax, providing:

• customer number
• property address
• the date the use of this land commenced (certificate of occupancy)
• for residential care facilities, a copy of the registration with the Commonwealth Department of Health and Ageing as an approved provider under the Aged Care Act 1997, and confirmation that the premises in question is registered either as a residential care service or multi-purpose service in accordance with Part 2.6 of the Aged Care Act 1997
• for supported residential services, confirmation that the premises in question is recognised as a supported residential service in accordance with the Health Services Act 1988
• the date the facility or service was or will be available for occupation
• details of circumstances and arrangements under which the accommodation is provided, including information on the background and types of persons that are accepted as residents of the facility or service:
  • a copy of any brochures or promotional material that describes the premises and the services provided
  • evidence of the residential services provided on the property, such as a staff roster
  • copies of the standard residential agreement (or other relevant documentation) for the residential services provider
• details of whether the land is used for any other purpose(s), including:
  • the size of any undeveloped area(s) of the land
  • copies of plans of any undeveloped area(s) of the land
• if under construction or newly constructed, a copy of a site plan (schematic diagram) for the land showing details of the layout and dimensions of the building/s constructed on the land, including gardens, and a copy of the building permits and subsequent occupation permit/s
• any other information or documents which you consider relevant support to your claim for an exemption from land tax.

10. Residential services for people with disabilities

Land is exempt if it is occupied, or currently available for occupation as:

• a residential service for people with disabilities within the meaning of the Disability Act 2006, or
• an SDA enrolled dwelling provided by an SDA provider within the meaning of the Residential Tenancies Act 1997.

If only part of the land is occupied, or currently available for occupation as a residential service for people with disabilities, or as an SDA enrolled dwelling provided by an SDA provider, the exemption will only apply to that part.

This exemption extends to land where the facility is being constructed until the earlier of the following:

• the date construction is completed
• two land tax years from the date construction commenced.

Apply for this exemption

Write to us requesting an exemption under section 76A with the following information:

• customer number
• property address
• the date the facility was or will be available for occupation
• details of the residential services provided on the property:
  • a copy of brochures/promotional material describing the premises and the services provided
  • evidence of the residential services provided on the property, such as a staff roster
  • copies of the standard residential agreement (or other relevant documentation) for accommodation between residents (persons with a disability) and the residential services provider
• details of the SDA enrolled dwelling on the property:
  • evidence that the dwelling is enrolled as an SDA dwelling under the National Disability Insurance Scheme (NDIS) (Special Disability Accommodation) Rules 2020
  • copies of the SDA residency agreements or residential tenancy agreements with the SDA residents
  • evidence that the SDA provider is a registered NDIS provider with the NDIS Quality and Safeguards Commission to provide specialist disability accommodation
• details of whether the land is used for any other purpose/s, including:
  • details, including size, of any area/s of the land used for other purposes
  • copies of plans for these area/s of the land
• evidence that the disability service provider is either the Secretary of the Department of Human Services or registered with the Department of Human Services
• where the owner has leased the land to a disability service provider within the meaning of the Disability Act 2006, or to an SDA provider within the meaning of the Residential Tenancies Act 1997, also include a copy of the rental or lease agreement between the owner and the disability service provider or the SDA provider
• if under construction or newly constructed, a site plan (schematic diagram) for the land showing details of the layout and dimensions of the building/s constructed on the land, including gardens
• a copy of the building permits/and subsequent occupation permit/s
• any other information or documents which you consider relevant support to your claim for an exemption from land tax.

11. Retirement villages

Land which is occupied or currently available for occupation as a retirement village is exempt whether the retirement village is operated commercially or for charitable purposes. If only a part of the land is occupied, or currently available for occupation as a retirement village, then only a partial exemption is available to the land.

A retirement village is defined as a complex containing residential premises predominantly or exclusive occupied by retired persons under any of the following:

• a residential tenancy agreement or any other lease or licence
• a right conferred by shares
• the ownership of residential premises subject to the right or option of repurchase on conditions restricting the subsequent disposal of the premises other than a complex or premises that is or are a residential care facility or supported residential service.

This exemption extends to land where the facility is being constructed and is available until the earlier of the following:

• the date construction is completed
• two tax years from the date of construction commenced.

Apply for this exemption

Apply for this exemption via My Land Tax, providing:

• customer number
• property address
• the date the village/unit/property was or will be officially occupied as a retirement village and, If constructed, copies of occupancy permit/s
• whether the premises is only occupied by retired persons and if not, the percentage of residents who are retired
• what percentage of the premises is currently occupied and under what type of arrangement they are occupied
• details of the facilities offered at the premises, including the details of facilities planned for the future:
  • a copy of any brochures or promotional materials that describe the premises and the facilities and services provided
• whether the residents are accommodated pursuant to:
  • a residential tenancy agreement or any other lease or licence, or
  • a right conferred by shares, or
  • the ownership of residential premises subject to the right or option of repurchase on conditions restricting the subsequent disposal of the premises
• a copy of the standard residential tenancy agreement/lease or any other document evidencing the accommodation arrangement between the residents and the proprietors of the facility
• what the land/property is used for
• details of whether the land is used for any other purposes, including:
  • details, including size, of any undeveloped areas of the land
  • if constructed, a site plan (schematic diagram) for the land showing details of the layout and dimensions of the building/s constructed on the land, including gardens
  • copies of plans for the undeveloped areas
• a copy of the financial statements for the most current financial year and 2 prior years in respect of the property
• if the village is being developed in stages, a table listing each individual unit or area and giving the date of the building permit and date of occupancy certificate
• any other information or documents that you consider relevant to support your claim for an exemption from land tax.

12. Caravan parks

Land is exempt if it is used as a caravan park registered in accordance with the Residential Tenancies Act 1997. If only part of the land is used as a registered caravan park the exemption will only apply to that part.

Special land tax at the rate of 5% of the value of the land will apply if the land ceases to be exempt. This may occur through the land ceasing to be used by the owner as a caravan park or being sold for an alternative use.

Apply for this exemption

Write to us requesting an exemption under section 77 with the following information:

• customer number
• property address
• confirmation that the caravan park is a registered caravan park within the meaning of the Residential Tenancies Act 1997 in the form of a registration certificate issued by the relevant municipal council for the period which exemption is being sought
• the date on which residents commenced occupation of caravans on the land
• the percentage of the caravan park that is used as a registered caravan park, if applicable
• the stage of development of the land as completed as at 31 December of the year preceding the tax year, if applicable
• any plans lodged with or approved by the municipal council relevant to caravan park registration, including any plans, if applicable.

13. Mines

Land is exempt if it is used exclusively as a mine. Under the Land Tax Act 2005, land is considered to be a mine if it is land:

• covered by a mining licence issued under the Mineral Resources (Sustainable Development) Act 1990, or
• located in the Latrobe area as defined in the Electricity Industry (Residual Provisions) Act 1993.

Special land tax at the rate of 5% of the value of the land may apply if this exemption ceases.

Apply for this exemption

Write to us requesting an exemption under section 86 with the following information:

• customer number
• property address
• the date the use of the land commenced
• details of the land, including its location and the activities performed on it
• a copy of the mining licence issued for the land.

14. Agricultural shows and farm field machinery days

Land is exempt if it is vested or held in trust for a body established for the purposes of conducting agricultural shows, farm field machinery days or activities of a similar nature and is used for those activities. There must also be no profit or gain to the members of the body.

Apply for this exemption

Write to us requesting an exemption under section 85 with the following information:

• customer number
• property address
• the date the use of the land commenced
• details of the land, including its location and the activities performed on it
• a copy of:
  • the body’s constitution or memorandum and articles of association, or
  • the rules of association and the objectives for which the body was established, and
  • the body’s most recent financial statement including asset registers, and
  • any other material showing the activities carried out on the land.

15. Not-for-profit clubs (excluding horse and harness racing clubs and private gender-exclusive and gender-restrictive clubs)

Land is exempt if it is owned and solely occupied by a not-for-profit club that exclusively provides for the social, cultural, recreational, literary or educational interests of its members.

This exemption may apply to all or part of land that is owned and solely occupied by the club. Where only a part of the land qualifies for the land tax exemption, the remaining part of the land will be assessable for land tax unless another exemption applies to that part.

This exemption is not available for private gender-exclusive clubs and gender-restrictive clubs from the 2022 land tax year onwards, subject to the information below.

Apply for this exemption

Write to us requesting an exemption under s73A with the following information:

• customer number
• property address
• details about what the property is used for and the portion applicable to each use
• the commencement date for the use of the property
• a copy of the club’s constitution or memorandum and articles of association
• the rules of association and the objectives for which the club has been established
• a copy of the club’s most recent financial statement including asset register
• written confirmation that the club is gender inclusive (i.e. a statement that the club is not a gender-exclusive or gender-restrictive club as defined below). 

Private gender-exclusive and gender-restrictive clubs

From the 2022 land tax year, the land tax exemption for club land is not available for private gender-exclusive and gender-restrictive clubs, subject to the following information. 

A gender-exclusive club is a club that excludes persons from membership on the basis of sex or gender identity. The land tax exemption for club land is not available to gender-exclusive clubs unless the club satisfies the Commissioner that its purposes are such that it is consistent with community interests and expectations that the exemption apply. 

A gender-restrictive club is a club that was gender-exclusive on or after 20 May 2021 and has subsequently removed this membership restriction. 

The land tax exemption for club land is not available to gender-restrictive clubs unless the club satisfies the Commissioner that it is genuinely inclusive of members of any sex or gender identity or its purposes are such that it is consistent with community interests and expectation that the exemption apply.

Frequently asked questions

Apply for the exemption on the basis the club provides community benefit (private gender-exclusive or gender-restrictive clubs)

Write to us requesting an exemption under s73A with the following information:

• customer number
• property address
• details about what the property is used for and the portion applicable to each use
• the commencement date for the use of the property
• a copy of the club’s constitution or memorandum and articles of association
• the rules of association and the objectives for which the club has been established
• a copy of the club’s most recent financial statement including asset register.

You will also need to specifically set out the community benefit the club provides, addressing the following: 

• the club's purposes 
• the club's membership composition 
  • total number of members 
  • total number of members from each sex or gender identity
• membership classes and the rights of members of the club 
  • where there are different classes of members with different rights, you will need to explain those different rights and the purpose for having those different membership classes — include relevant information such as any gender-restricted classes and/or gender composition within classes
• the nature of the benefits or services the club provides to its members
• the benefits or services the club provides to the community
  • what these are
  • how these differ from benefits provided to members (for example, a club that exists to provide professional networks, personal development, financial opportunities and/or social connections where access to, and the benefits of, these are restricted to members of the club is unlikely to be accepted as meeting the community benefit requirement)
• whether the benefits or services the club provides to its members are to meet their special needs or particular personal characteristics (for example, a club established to provide free counselling services and support for women who are survivors of family and domestic violence has purposes that are consistent with the community interests and expectations) 
• any other relevant circumstances.
   

16. Land protected by a conservation covenant with Trust for Nature

From the 2024 land tax year, land is exempt if it is protected by a conservation covenant which is registered on title, being a voluntary, legal agreement made between a private landowner and Trust for Nature to permanently conserve land. Trust for Nature is a body corporate established under the Victorian Conservation Trust Act 1972 to preserve areas which are ecologically significant in Victoria. Conservation covenants must be registered on title and are legally binding.

A partial exemption is available where only part of a land is subject to a conservation covenant. Land tax will continue to be assessable on the part of land that is not exempt.

Apply for this exemption

Apply for this exemption via My Land Tax, providing:

• your customer number
• property address
• details of what the land is used for, e.g. your home, primary production land. If it is used for more than one activity, please tell us about them all
• a copy of the conservation covenant entered into with Trust for Nature
• the percentage of land that is protected under the conservation covenant.

Land tax concession for racing clubs

A concessional rate of land tax may apply to land that is owned and solely occupied by a not-for-profit club that is carried on to exclusively provide for the promotion or control of horse, pony or harness racing in Victoria.

The concession may apply to all or part of the land that is owned and solely occupied by the club. If the concessional rate applies, the liability for land tax is limited to a maximum of 0.357 cents for every dollar of the taxable value of the land. In practice, this means that the concession applies only to land of a reasonably high value.

Apply for this concession

Write to us requesting the concession under s73 with the following information:

• customer number
• property address
• details about what the property is used for, and the portion applicable to each use
• the commencement date for the use of the property
• a copy of the club's constitution or memorandum and articles of association
• the rules of association and the objectives for which the club has been established
• a copy of the club's most recent financial statement including asset register.

Land tax concession for build-to-rent developments

Build-to-rent (BTR) developments are eligible for a 50% concession on the taxable value of the land used solely for the BTR development for up to 30 years. They are also exempt from the absentee owner surcharge (AOS) in respect of that land during that time.

Eligible BTR developments are:

• new or substantially renovated buildings with at least 50 self-contained dwellings
• held within a unified ownership structure, and
• managed by a single management entity.

Dwellings must be suitable for occupancy on or after 1 January 2021 and before 1 January 2032. A dwelling is suitable for occupancy on the date that an occupancy permit is issued. 

The dwellings must also be rented or available for rent under a residential rental agreement, which:

• must include an option for a 3-year lease term, and
• must not be subject to any restrictions except for those required to ensure public health and safety or to provide for social or affordable housing. 

Where a BTR development is expanded or built in stages, the subsequent stage will also be eligible for the BTR tax benefits, provided that stage:

• meets the eligibility criteria, or
• forms part of a BTR development that meets the eligibility criteria and has been receiving the BTR tax benefits.

The land tax concession and AOS exemption are provided on the condition that the BTR development satisfies the eligibility criteria for a continuous period of at least 15 years from when the occupancy permit for the dwellings was issued (i.e. the occupancy date). A BTR development can have more than one occupancy date. If there is a change in circumstances that results in the land (or part of the land) ceasing to meet the eligibility criteria within the 15 year period, a one-off tax liability called BTR special land tax will be triggered with respect to that land (or part of land). The purpose of the BTR special land tax is to recoup the financial advantage provided to the land by way of the BTR tax benefits. The owner of the land at the time of the change in circumstances will be liable for the BTR special land tax. There is an obligation on an owner of land to notify the Commissioner in writing within 30 days of the change in circumstance. The failure to do so is a notification default that may result in penalty tax being imposed in addition to BTR special land tax.

Frequently asked questions about the land tax discount for build-to-rent developments

Apply for this concession

Write to us to claim this concession with this information:

• customer number
• property details, including: 
  • addresses and volume and folio numbers for all lands which form part of the BTR development
  • if only part of the land/s are used for the BTR development, details about the other uses, and the portion applicable to each use, as well as supporting information for the apportionment
• details of the ownership structure of the BTR development 
  • note all lands that form the BTR development must be owned in the identical manner by the same owner or owners.
• if there is a separate management entity servicing the BTR development, details of that management entity
• details of the dwellings which form part of the BTR development, including:
  • number of dwellings
  • copies of occupancy permits for each dwelling
  • date(s) each dwelling was made available for rent
  • evidence that the dwellings, other than those for social or affordable housing, were available for rent under a residential rental agreement for a fixed term of not less than 3 years
  • confirmation that the residential rental agreements are not restricted in any way other than to ensure public health and safety or to provide social and affordable housing
• details of the facilities offered at the premises, including common areas, which form part of the BTR development
• any other information or documents that support your claim for the BTR development land tax concession and AOS exemption.