Victoria’s Tax Addiction: How Property Owners Are Funding Nearly Everything
/In this year’s Victorian Budget, one thing has become abundantly clear: the State Government is hooked on property taxes.
According to the budget papers, nearly 47 per cent of Victoria’s entire tax revenue now comes from property-related sources—a figure that will raise eyebrows for homeowners, buyers, investors, and anyone wondering where their rates and stamp duty are going.
The Government is set to collect a staggering $22.4 billion in property taxes over the next four years, out of a total tax forecast of $47.9 billion. And when you factor in GST distributions from the Commonwealth, there’s very little else contributing to the State’s bottom line. If you stripped out property-related taxes and GST receipts, the Victorian Government would be almost entirely revenue-less.
This isn't just about one or two taxes. The state has layered property owners with:
Stamp duty on every transaction
Land tax (now increasingly affecting the middle class)
The newly rebranded Emergency Services and Volunteers Fund levy (which is more expensive than the Fire Services Levy it replaced)
Ongoing increases in vacant residential land taxes and absentee owner surcharges
This means that whether you’re buying, selling, owning or simply investing in property, you are funding the core operations of the Victorian Government.
For those in the property sector—including licensed conveyancers, developers, mum-and-dad investors, and even first home buyers—this paints a concerning picture. Every transaction, every year of ownership, and every dollar of value tied to real estate is subject to increasing extraction by Treasury.
It begs the question: What exactly is being done with all this money? And more critically, how long can Victoria keep pulling from the same well before it runs dry?
Even Reserve Bank economists and real estate experts have warned of the distorting effect of excessive reliance on property as a tax base. It discourages investment, slows market activity, and reduces housing affordability—while providing no structural reform or financial sustainability for the State itself.
The truth is this: Victoria has become a tax junkie, and property is its fix.
If you’re buying or selling property in Victoria, now more than ever, you need clear guidance and accurate advice on what taxes apply and how they will impact your transaction.
We’re here to help you navigate this minefield with confidence.
David Dawn
Licensed Conveyancer
Victorian Property Settlements
Post Office Box 11220
Frankston Victoria 3199
📧 david@quick32.com
📞 03 9783 0111