Victoria Premier Ben Carroll promises land tax rollback

Victorian Premier Ben Carroll has pledged to progressively roll back land tax changes if the Labor Party is re-elected in the upcoming November state election. The proposal involves raising the land tax-free threshold from its current $50,000 level back toward the previous $300,000 threshold.

The tax-free threshold was lowered from $300,000 to $50,000 in 2023 under former Premier Daniel Andrews as part of a COVID-era debt repayment plan. Under Carroll’s proposed plan, the threshold would increase by $25,000 annually, eventually returning to the pre-pandemic level by 2033. The government estimates this move would remove approximately 250,000 Victorians from the tax system, providing cost-of-living relief of up to $975 per year for some owners.

Both major political parties in Victoria have offered election relief regarding this tax. The opposition has proposed a similar rollback but at a faster rate, aiming to reach the $300,000 threshold by 2031/32 through $50,000 annual increases. The land tax applies to taxable land excluding a person's principal residence, covering investment properties, holiday homes, and certain commercial or vacant lands.