Labor Will Cut Land Tax to Help with the Cost of Living

Victorians are dealing with higher interest rates and household budgets are under pressure.

That’s why a re-elected Carroll Labor Government will cut land tax.

• We will reverse the 2023 changes to the land tax threshold

• We will implement it progressively, so families start saving on day one

• We can afford it thanks to commonsense decisions to reduce spending

This change will remove more than 250,000 people from the land tax system and save them thousands of dollars.

How land tax works

Land tax has always existed.

You pay land tax on investment properties and other land that isn’t your principal place of residence.

In 2023, the threshold for paying land tax was lowered from a site value of $300,000 to $50,000.

Today, that means 250,000 additional Victorians now pay land tax.

The vast majority of them pay it on one property.

These Victorians pay up to $975 a year in land tax at a time when interest rates are rising.

We will cut land tax

If re-elected, Labor will cut land tax by reversing the 2023 changes to land tax thresholds.

We will restore the land tax threshold back to a site value of $300,000.

All up, that will save more than 250,000 Victorians up to $975 a year.

We will implement it progressively

This is a significant change to the budget which we will implement progressively and responsibly over six years.

And the relief will start in year one.

Our first budget next year will deliver land tax cuts, backed by legislation.

For the 2027/28 year, we will raise the land tax threshold by $25,000.

• That saves 33,000 Victorians $500 in the first year – or $3,000 over the six-year period.

For the 2028/29 year, we will raise the land tax threshold by another $25,000.

• That saves an extra 27,000 Victorians $500 a year – or $2,500 over the remaining five years.

For the 2029/30 year, we will raise the land tax threshold by another $25,000.

• That saves an extra 23,000 Victorians $975 a year – or $3,900 over the remaining four years.

For the 2030/31 year, we will raise the land tax threshold by another $25,000.

• That saves an extra 24,000 Victorians $975 a year – or $2,925 over the remaining three years.

We will keep raising the threshold beyond the forwards until the $300,000 threshold is fully restored at the end of the six year implementation in financial year 2033/34.

We have a responsible way to pay for it

Victorians deserve lower taxes.

They also deserve a government that says how they’ll pay for tax cuts, without cutting schools and hospitals.

Labor’s land tax changes will cost $230 million over five years.

We will create capacity by consolidating the government car fleet, saving $70 million.

We’ve also made commonsense decisions to delay level crossing removals, saving $798 million.

And we have reduced the number of public service executive roles saving the Budget more than $100 million.

We will commit to further commonsense decisions beyond that, because every dollar will be accounted for.

Cost-of-living relief that lasts

Lower land tax means more cost-of-living relief for working people – that’s our priority.

We want to take pressure off household budgets however we can.

Labor has already delivered free kinder, free TAFE and free public transport for children.

A re-elected Carroll Labor Government will deliver free dental care for Victorians.

Now we’ll progressively cut land tax, too.

It’s another permanent saving that leaves more money in people’s pockets every year.

Quotes attributable to Premier Ben Carroll

“Lower land tax, more cost-of-living relief, and a responsible way to pay for it.”

“I’m a new Premier and this is my new direction.”

“I’ll cut land tax in my first Budget.”

“Working people who are paying off two mortgages are feeling the pressure as much as anyone right now.”

Quote attributable to Treasurer Colin Brooks

“We’ve made commonsense decisions and now we can deliver cost-of-living relief that lasts.”

Quote attributable to Deputy Premier Gabrielle Williams

“The Liberals and One Nation must explain how they’ll fund their tax cuts without cutting schools and hospitals.”

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