Full Breakdown
Victorian Land-Tax Rollback: What the Six-Year Plan Means for 250,000 Residents
By Drooid · · How we work
Land-Tax Rollback Overview
Premier Ben Carroll announced on October 4, 2026 that the land-tax free threshold will rise from $50,000 back toward $300,000 over six years. The threshold will increase by $25,000 each of the next four financial years, reaching $300,000 by 2033. The change is projected to remove about 250,000 Victorians—mostly owners of a single property—from the tax roll, saving up to $975 per year depending on property value. Carroll said the overhaul will cost the budget $230 million, which the government says it can fund through spending cuts such as delayed level-crossing removals and a reduced public-service executive cadre.
Background to the Andrews-Era Policy
In the 2023 budget, the Andrews government lowered the land-tax threshold to $50,000 and added fixed charges of $500 for land values $50,000-$100,000 and $975 for values above $100,000. Those measures were intended to raise $4.7 billion over four years to service the state’s COVID-related debt. The policy added hundreds of thousands of owners to the tax list and increased the cost of second homes and investment properties.
Financial Impact and Debt Context
When the higher taxes took effect, Victoria’s net debt rose from $116 billion to $167 billion, with forecasts of nearly $200 billion by the decade’s end. The government argues that the rollback will not jeopardize fiscal stability because of the aforementioned spending reductions.
Criticism & Opposition
The Property Council’s Victorian executive director Cath Evans warned that “there is a range of taxes where Victoria is completely out of whack with our interstate counterparts.” Opposition Leader Jess Wilson pledged to lift the threshold by $50,000 a year over five years, estimating a revenue loss of $360 million. Housing-industry groups have also warned that the original tax hikes could suppress rental supply and drive up rents.
Verbatim Quotes
- “Lower land tax means more cost-of-living relief for working people – that’s our priority,” — Premier Ben Carroll
- “I’m a new premier and this is my new direction,” — Premier Ben Carroll
- “There is a range of taxes where Victoria is completely out of whack with our interstate counterparts,” — Cath Evans, council’s Victorian executive