The Nationals’ Member for Euroa, Annabelle Cleeland, has condemned the Allan Labor Government’s land tax regime, saying it is now actively punishing Victorians who work from home – slapping them with unexpected tax bills simply for using part of their home to earn a living.
“This land tax regime is out of control,” Ms Cleeland said.
“We now have hardworking families being penalised just for using a room in their home to earn a living.”
The criticism follows continued advocacy from Ms Cleeland on behalf of constituents who have received land tax assessments under deeply unfair circumstances – particularly where land is held in trust, or where residents operate small businesses from their principal place of residence.
“These are people doing the right thing – raising families, running small businesses, and contributing to their communities.
“Now they’re being dragged into a complicated and punishing tax system.”
New evidence shows that even minor business activity, such as converting a garage into a workspace, can lead to PPR exemptions being significantly reduced.
If the home is held in a discretionary trust, families may be denied the exemption altogether, regardless of whether they live on the land.
“These rules are bureaucratic, rigid, and completely out of touch with the reality of how people live and work in 2025,” Ms Cleeland said.
This latest outrage follows the introduction of new land tax thresholds by the Allan Labor Government at the start of 2024, which saw thousands of landholders across the Euroa electorate receive a land tax bill for the first time – and many more saddled with significantly higher bills.
In 2024 alone:
- 1,763 landowners in Mitchell Shire faced higher land tax liabilities than in 2023,
- 437 landowners in Strathbogie Shire were hit with increases,
- and 429 landowners in Benalla suffered the same fate.
“With the end of financial year around the corner, I’m urging landholders to check their bills carefully,” Ms Cleeland said.
“My team has received dozens of reports of incorrect assessments, from renters to children to people living in their family home being wrongly taxed.
“In the midst of a cost-of-living crisis, it’s wrong that everyday Victorians are being used to plug holes in Labor’s debt.
“Victorians already pay the highest property taxes per capita in the country, and now they’re being chased down for technicalities in the fine print.”
Ms Cleeland encouraged any residents who have received concerning land tax bills to seek advice and ensure they are not paying more than they owe.
Information on land tax exemptions can be found at http://www.sro.vic.gov.au/land-tax/land-tax-exemptions or by calling the SRO on 13 21 61 during business hours.