As part of the 2023-24 State Budget, the Victorian Government introduced a COVID Debt Repayment Plan.
This included the following temporary changes to land tax and payroll tax, which are legislated to apply until 30 June 2033:
Land tax
From the 2024 land tax year, there has been a change to land tax rates and thresholds, for the total taxable value (site value) of landholdings:
- $50,000 to <$100,000 — a $500 flat surcharge will apply.
- $100,000 to <$300,000 (or <$250,000 for trusts) — a $975 flat surcharge will apply.
- ≥$300,000 (or ≥$250,000 for trusts) — a $975 flat surcharge will apply, plus an increase to the rate of land tax by 0.10 percentage points.
These increases have been incorporated into the applicable rates for the 2024 to 2033 land tax years. Find out more about current land tax rates.
Payroll tax
From 1 July 2023, a temporary payroll tax surcharge will apply on wages paid in Victoria by businesses liable for Victorian payroll tax with national payrolls over $10 million a year.
A rate of 0.5% will apply for businesses with national payrolls above $10 million, and businesses with national payrolls above $100 million will pay an additional 0.5%.
These tax changes are legislated to apply until 30 June 2033.
