The South-East Melbourne Manufacturers Alliance has called for a royal commission into Victoria’s land valuation and land tax system, arguing rising bills are restricting investment and hiring.
SEMMA wants the inquiry to examine valuation methods, tax calculations and the dispute process. The group represents manufacturers across Melbourne’s south-east, including Frankston and the Mornington Peninsula.
Chief executive Honi Walker said SEMMA had unsuccessfully pushed for a parliamentary inquiry for almost five years.
“Our requests are constantly ignored, deflected and dismissed,” Ms Walker said.
Bills rise faster than land values
SEMMA provided anonymised figures for two industrial properties.
A Dandenong property’s site value rose almost 15 per cent, from $3.75 million in 2023 to $4.3 million in 2024. Its land tax bill increased about 40 per cent, from $47,100 to $66,100.
In Hallam, a property’s value more than doubled from $4.2 million to $8.5 million. Its tax bill rose from $58,575 to $177,400.
The reported tax amounts match the State Revenue Office’s general-rate formulas for those values. However, the release did not include assessment notices, so STPL News could not verify the underlying valuations.
Why the bills increased
The Valuer-General sets site values annually, while the State Revenue Office applies Victoria’s progressive land tax scale.
For holdings worth more than $3 million, the formula changed in 2024 from $27,975 plus 2.55 per cent of the amount above $3 million to $31,650 plus 2.65 per cent. The higher rate forms part of Victoria’s COVID Debt Repayment Plan and will remain until 2033.
SEMMA linked the tax increases to Victoria’s debt and claimed it could approach $1 trillion by 2030. The 2026-27 Victorian Budget instead forecasts net debt of $199.3 billion by June 2030.
Landowners who dispute a site value have two months to object through the State Revenue Office. They must pay the assessment while officials consider the objection.
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