4% of your land value No surcharge below $50,000
Victoria Absentee Owner Surcharge
Victoria charges an absentee owner 4% of the total taxable value of their land, on top of the general land tax. It is not a small loading: on $1,000,000 of land the land tax is $4,650 and the surcharge is $40,000.
1 Enter your total taxable value2 See the land tax you owe
Step 2 · your result
Estimated land tax including surcharge
$0
the surcharge, plus the land tax it sits on
- Total taxable value
- $0
- Surcharge threshold
- $0
- Absentee owner surcharge (4%)
- $0
- Effective rate
- —
The land tax figure in the result comes from the SRO land tax rates table; the surcharge rate from Understanding the absentee owner surcharge (page updated 23 September 2026). Checked 15 October 2026. General estimate only — not tax advice.
The rate, and what it is charged on
| Period | Rate |
|---|---|
| 2024 land tax year onwards | 4% |
| 2020 to 2023 land tax years | 2% |
It is charged on the total taxable value of all your Victorian land, on top of the general land tax and trust surcharge rates — it does not replace them. You are assessed on your status at 31 December, and the surcharge is charged in the following land tax year.
land tax + (4% × taxable land value)
The surcharge is the second term, and it is the larger one at almost any value above the threshold.
Why the surcharge dwarfs the land tax
| On $1,000,000 of taxable land | Amount |
|---|---|
| General land tax (State Revenue Office Victoria rate table) | $4,650 |
| Absentee owner surcharge (4% of the value) | $40,000 |
Both figures are computed from the two published tables, not typed in. If a calculator only shows you the first line, it is answering about a tenth of the question.
Who is an absentee owner
- You do not pay it if your total taxable value is below $50,000, or if your land is exempt from land tax. Land held on trust is below $25,000 instead.
- Australian citizens and permanent residents who live overseas are not absentees. That is the opposite of how most people guess it works.
- From 1 January 2026, New Zealand citizens are subject to the same rules as other foreign citizens — the previous special treatment has ended.
- If you are an absentee owner on 31 December, you must tell the SRO by 15 January using the online portal, or penalty tax may apply. Your status also has to be updated if your residency, company structure or trust arrangements change.
- The High Court decided in October 2025 that absentee owner surcharge payable on or after 1 January 2018 is valid, so assessments for those years stand.
- There are narrow exemptions for some absentee corporations that run a commercial operation in Victoria using local labour, materials and services, for some absentee trusts, and for build-to-rent developments — which can also get a separate 50% land tax concession for up to 30 years.
Frequently asked questions
What is the absentee owner surcharge in Victoria?
4% of the total taxable value of your Victorian land, from the 2024 land tax year onwards. It is charged on top of the general land tax and trust surcharge rates, not instead of them. The rate was 2% for the 2020 to 2023 land tax years.
Is the 4% of my land value or of my land tax?
Of your land value — and that single detail is the difference between a few thousand dollars and $60,000. On $1,000,000 of taxable land the general land tax is $4,650, while the surcharge is $40,000. Most calculators only implement the general rate table, so they understate an absentee owner’s assessment badly.
When does the absentee owner surcharge not apply?
The SRO lists three cases: your land is exempt from land tax; the total taxable value of your land is below $50,000; or your land is held on trust and is below $25,000 with the trust surcharge rate applying.
I am an Australian citizen living overseas — am I an absentee?
No. The SRO states that the absentee owner surcharge does not apply to Australian citizens and permanent residents who live overseas. Absentee status turns on citizenship and permanent residency, not on where you live.
What about New Zealand citizens?
From 1 January 2026, New Zealand citizens are subject to the same rules as other foreign citizens. Before that they were treated differently, so older advice on this point is out of date.
Do I have to tell the SRO?
Yes. If you are an absentee owner on 31 December, you must notify the SRO by 15 January through the online portal, and the surcharge is then charged in the following land tax year. Penalty tax can apply if you notify late, and you must also update your status if your residency, company structure or trust arrangements change.
Are there any exemptions?
There are narrow ones. An absentee corporation that is incorporated in Australia, owns land in its own right and runs a commercial operation in Victoria using local labour, materials and services may be exempt — a corporation incorporated outside Australia cannot be. Some absentee trusts can be exempt if all their absentee beneficiaries are. Build-to-rent developments may qualify for their own exemption plus a separate 50% land tax concession for up to 30 years.
Related
- Victoria land tax calculator — the general rate table the surcharge sits on
- NSW surcharge land tax — how the other state does it
- Every state’s land tax compared
- Stamp duty in VIC — the one-off tax on the purchase, where a foreign buyer usually pays a surcharge too