Insights Library
A Guide to Land Tax Objections
If you are a landowner in Victoria and received a land tax notice from the State Revenue Office (SRO), time is of the essence if you wish to dispute the valuation that was relied upon to levy the land tax(s).
Pursuant to the Valuation of Land Act 1960 (Vic) (Act), you are required to object to the valuation of land within 60 days from the date of receipt of the land tax notice. As it is usually difficult to prove when the land tax notice was received, we recommend lodging an objection within 60 days from the date of issue of the notice.
An objection may, in certain circumstances, be made outside of the 60 days timeframe, however, it is usually only accepted by the SRO in exceptional circumstances and with a valid reason for not being lodged in time.
An objection may be made to the valuation in the land tax notice for any of the following reasons:
- the value assigned is too high or too low;
- the interests held by various persons in the land have not been correctly apportioned;
- the apportionment of the valuation is not correct;
- lands that should have been included in one valuation have been valued separately;
- lands that should have been valued separately have been included in one valuation;
- the person named in the land tax notice is not liable to be so named; and
- the area, dimensions or description of the land are not correctly stated in the land tax notice.
If the basis for the objection is that the site value is too high or too low, the objection must be accompanied by what is contended to be the correct value (although such value is not binding on the objector).
Once an objection is made and the basis for that objection is that the value assigned is too high or too low, the SRO’s appointed valuer is to provide you with the prescribed information under the Valuation of Land Regulations 2014 if the valuation of the land that you are objecting to is not less than the following values:
- a net annual value of $120 000; or
- a site value of $1 500 000; or
- a capital improved value of $2 000 000.
Within one month after receiving the prescribed information, you are to then provide the SRO’s appointed valuer with a written submission explaining the basis for the objection and this is usually prepared by a valuation expert which includes details of relevant sales evidence.
The SRO’s appointed valuer will then consider your submission and must, within 4 months of the date of the objection, advise you of its decision as to whether an adjustment is or is not justified.
If the objection is made for another reason, other than the valuation assigned is too high or too low, then the SRO’s appointed valuer is to consider the objection and make its decision within 4 months of the date of objection.
If the decision is that an adjustment is justified, then the SRO’s appointed valuer is to give you and the Valuer General Victoria a notice of recommendation. The Valuer General Victoria must then consider the recommendation to adjust the valuation and make a decision, within 2 months, as to whether the recommendation is to be confirmed or refused.
If the objection is approved, the SRO will then revise the land tax notice accordingly and refund or apply a credit to the objector for any overpaid tax.
It is important to note that whilst you may have objected to the valuation in the land tax notice, you are still required to pay the land tax when it falls due. Failure to pay the land tax by the due date may result in being in default and interest accruing.
Alternatively, if you are dissatisfied with the decision of the appointed valuer or Valuer General Victoria, then within 30 days of the date of the decision, you may apply to the Victorian Civil and Administrative Tribunal for a review of the decision.
If you would like to discuss, please contact Sebastian Greenway on 03 9691 0201, sgreenway@besthooper.com.au or Lauren Cullen on 9691 0217, lcullen@besthooper.com.au.
