{"id":1750,"date":"2025-03-30T19:41:24","date_gmt":"2025-03-30T09:41:24","guid":{"rendered":"https:\/\/www.bantacs.com.au\/Jblog\/?p=1750"},"modified":"2025-03-31T10:13:27","modified_gmt":"2025-03-31T00:13:27","slug":"victorian-land-tax-grab-far-reaching-ramification-of-reducing-the-threshold-to-just-50000","status":"publish","type":"post","link":"https:\/\/www.bantacs.com.au\/Jblog\/victorian-land-tax-grab-far-reaching-ramification-of-reducing-the-threshold-to-just-50000\/","title":{"rendered":"Victorian Land Tax Grab \u2013 Far Reaching Ramification of Reducing the Threshold to just $50,000"},"content":{"rendered":"<div class=\"entry\">\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/Victoria-is-looking-to-solve-its-state-debt-via-land-tax.pdf\">Download PDF<\/a><\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Victoria appears to be looking to solve its state debt with land tax.&nbsp; Last year saw the vacancy tax extended to most of the state, except for Alpine resorts <a href=\"https:\/\/www.bantacs.com.au\/Jblog\/victorias-latest-vacancy-tax\/#more-1701\">https:\/\/www.bantacs.com.au\/Jblog\/victorias-latest-vacancy-tax\/#more-1701<\/a>&nbsp;<\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp; There was also the dropping of the land tax threshold from $300,000 for the 2023 year to $50,000 for 2024 and following years, collecting up most properties that are not fully covered by the principle place of residence exemption.&nbsp;<\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp; Even the most insignificant block of land is going to now attract land tax.&nbsp; This can also mean that a property covered by the principle place of residence exemption as well as being used in a business could be caught in the land tax net if the value of the area used in the business exceeds $50,000.&nbsp; The same applies if part of the property is being used as a separate residential rental, for example a granny flat.&nbsp; If the granny flat is earning income and occupies more than $50,000 worth of the land, based on the percentage of unimproved value, then land tax applies.<\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This trap for small business operators and people renting out part of their home, has been around for years but with a $300,000 unimproved value threshold not many people were caught unless they had other properties that already pushed them over the threshold.&nbsp; Now, use part of your home in a business and it is very likely you will hit the threshold.&nbsp; If the land value is $500,000 and you use more than 10% of the area as a rental or business activity you are caught.<\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; So what does used in a \u201csubstantial business activity\u201d mean?&nbsp; It doesn\u2019t take much.&nbsp; The following are some quotes from this ruling <a href=\"https:\/\/www.sro.vic.gov.au\/sites\/default\/files\/revenue-ruling-lta-001-v2.pdf\">https:\/\/www.sro.vic.gov.au\/sites\/default\/files\/revenue-ruling-lta-001-v2.pdf<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-01.png\"><img loading=\"lazy\" decoding=\"async\" width=\"365\" height=\"265\" src=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-01.png\" alt=\"\" class=\"wp-image-1751\" srcset=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-01.png 365w, https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-01-300x218.png 300w\" sizes=\"auto, (max-width: 365px) 100vw, 365px\" \/><\/a><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-02.png\"><img loading=\"lazy\" decoding=\"async\" width=\"355\" height=\"153\" src=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-02.png\" alt=\"\" class=\"wp-image-1752\" srcset=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-02.png 355w, https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-02-300x129.png 300w\" sizes=\"auto, (max-width: 355px) 100vw, 355px\" \/><\/a><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-03.png\"><img loading=\"lazy\" decoding=\"async\" width=\"360\" height=\"175\" src=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-03.png\" alt=\"\" class=\"wp-image-1753\" srcset=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-03.png 360w, https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-03-300x146.png 300w\" sizes=\"auto, (max-width: 360px) 100vw, 360px\" \/><\/a><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-04.png\"><img loading=\"lazy\" decoding=\"async\" width=\"390\" height=\"490\" src=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-04.png\" alt=\"\" class=\"wp-image-1754\" srcset=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-04.png 390w, https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/victoria-text-04-239x300.png 239w\" sizes=\"auto, (max-width: 390px) 100vw, 390px\" \/><\/a><\/figure>\n\n\n\n<p><strong>Land Tax Rates for 2024 and Following.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/land-tax-table.png\"><img loading=\"lazy\" decoding=\"async\" width=\"755\" height=\"725\" src=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/land-tax-table.png\" alt=\"\" class=\"wp-image-1755\" srcset=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/land-tax-table.png 755w, https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2025\/03\/land-tax-table-300x288.png 300w\" sizes=\"auto, (max-width: 755px) 100vw, 755px\" \/><\/a><\/figure>\n\n\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Download PDF &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Victoria appears to be looking to solve its state debt with land tax.&nbsp; Last year saw the vacancy tax extended to most of the state, except for Alpine resorts https:\/\/www.bantacs.com.au\/Jblog\/victorias-latest-vacancy-tax\/#more-1701&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; There was also the dropping of the land tax threshold from $300,000 for the 2023 year to $50,000 for 2024 and &#8230;<\/p>\n","protected":false},"author":3,"featured_media":1756,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21,9],"tags":[],"class_list":{"0":"post-1750","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-small-business","8":"category-your-own-home","9":"anons"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Victorian Land Tax Grab \u2013 Far Reaching Ramification of Reducing the Threshold to just $50,000 - Julia&#039;s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bantacs.com.au\/Jblog\/victorian-land-tax-grab-far-reaching-ramification-of-reducing-the-threshold-to-just-50000\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Victorian Land Tax Grab \u2013 Far Reaching Ramification of Reducing the Threshold to just $50,000 - Julia&#039;s Blog\" \/>\n<meta property=\"og:description\" content=\"Download PDF &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Victoria appears to be looking to solve its state debt with land tax.&nbsp; Last year saw the vacancy tax extended to most of the state, except for Alpine resorts https:\/\/www.bantacs.com.au\/Jblog\/victorias-latest-vacancy-tax\/#more-1701&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; There was also the dropping of the land tax threshold from $300,000 for the 2023 year to $50,000 for 2024 and ...\" \/>\n<meta property=\"og:url\" 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