Owning a property

Becoming a property owner in Victoria

If you are thinking of buying a property in Victoria, or you already own property, it’s important to understand what is involved.

For example, you pay land transfer (stamp) duty when you purchase property unless you are entitled to an exemption or concession. There are other benefits that may be available to you, including the First Home Owner Grant.

If the property is not going to be your home, you also need to know about land tax.

More about buying property

Owning property in Victoria

Once you own property in Victoria, you need to be aware of:

• paying land tax on properties that are not your principal place of residence
• paying vacant residential land tax if the property is not occupied for a certain length of time during a year
• contributing to the funding of emergency services via the fire services property levy
• paying the congestion levy if you own off-street parking spaces in 2 areas of inner Melbourne.

Land tax

If you own property in Victoria, you may have to pay annual land tax. This depends on the total taxable value (site value) of all the land you own as at 31 December (either individually, jointly or on trust) and what the land is used for. Apartments can also be subject to land tax as they have a site value.

Your home (principal place of residence) is exempt, and so is land used for primary production or for charitable purposes. Investment properties, commercial sites, and rentals or holiday homes, even if they are vacant, attract land tax.

You pay land tax when the total value of all the Victorian property you own, excluding your exempt land, is equal to or exceeds the threshold of $50,000 (for trustees, it's $25,000).

An absentee owner surcharge on land tax applies to Victorian land owned by an absentee owner.

More about land tax

Vacant residential land tax

From 1 January 2018 to 31 December 2024, vacant residential land tax (VRLT) applied only to residential land in inner and middle Melbourne that was vacant in the preceding calendar year.

From 1 January 2025, VRLT applies to residential land across all of Victoria if the land is vacant for more than 6 months in the preceding calendar year.

From 1 January 2026, unimproved residential land in metropolitan Melbourne that has remained undeveloped for at least 5 years and is capable of residential development may attract VRLT.

More about vacant residential land tax

Funding emergency services

The fire services property levy funds Victoria’s emergency services, and you pay the levy through your council rate notice for land you own in Victoria. State-wide rates apply to properties in the same property classification across Victoria.

In December 2024, the Victorian Government announced the fire services property levy will be replaced with the new emergency services and volunteers fund from 1 July 2025.

More about the fire services property levy

Congestion levy

This annual levy aims to reduce traffic congestion in central Melbourne by encouraging more motorists to regularly use public transport. Introduced in 2005, the congestion levy is charged each calendar year to off-street private and public car parking spaces in 2 specified areas.

Some exemptions and concessions apply, such as for residential and disabled parking, and spaces provided free of charge to visitors and patients.

More about the congestion levy

Getting it right

Our priority is to help you pay the right amount of tax at the right time. To assist you, we have prepared specific information in relation to some of the taxes and grants we administer, outlining:

• our compliance activities
• common errors to avoid
• how to submit a voluntary disclosure or tip-off.

Tips to help you get it right