Are You Considering a Land Tax Objection?
With land tax rates at record levels, many property owners are now considering lodging a formal objection – particularly where they have been unable to negotiate a suitable reduction in their assessed value with the Office of the Valuer-General Victoria.
Over the past 12 months, a number of cases have been determined at VCAT, and in some instances, progressed as far as the High Court of Australia. Outcomes have been mixed – some applications have been successful, others unsuccessful, and some struck out due to being misconstrued. In this article, we highlight the key factors that led to valuations being either upheld or overturned.
Grounds for Objection
It is important to understand the basis upon which an objection can be made under Section 17 of the Valuation of Land Act 1960.
The seven grounds for objection are:
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The value assigned is incorrect
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The interests held by various parties in the land have not been correctly apportioned
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The apportionment of the valuation is incorrect
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Land that should have been included in a single valuation has been valued separately
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Land that should have been valued separately has been included in one valuation
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The person named in the notice of valuation or assessment is not liable to be named
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The area, dimensions or description of the land (including the AVPCC classification) are incorrect
Recent Cases – Valuations Upheld
Several recent cases demonstrate the challenges of successfully contesting a valuation:
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Story v Valuer-General Victoria [2026] VCAT 57 (Read More)
A Rural Living zoned landholding in Beechworth was subject to objection due to the absence of a residential permit. The Tribunal accepted that a permit could reasonably be obtained (and was subsequently achieved), resulting in the valuation being upheld. -
Huang v Valuer-General Victoria [2025] VCAT 1068 (Read More)
A residential property in Caulfield South was challenged as being overvalued. Following analysis of comparable vacant sites and nearby sales, the Tribunal upheld the valuation. -
Montmark Pty Ltd v Valuer-General Victoria [2025] VCAT 762 (Read More)
An office warehouse in Mulgrave experienced a significant uplift in site value. Arguments relating to easements and restricted access were not considered sufficient to justify a reduction. -
Dropwar Investments Pty Ltd v Valuer-General Victoria [2025] VCAT 252 (Read More)
A showroom property in Hallam was contested with a proposed reduction in site value. The application was unsuccessful based on the evidence presented. -
Oei v Commissioner of State Revenue [2025] VCAT 1062 (Read More)
An objection relating to absentee owner surcharge rates in Glen Waverley was dismissed, with the assessment remaining in place.
Recent Cases – Valuations Overturned
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AAGC1 Pty Ltd v Valuer-General Victoria [2025] VCAT 411 (Read More)
A Pakenham site was successfully reduced in value from $9 million to $7.395 million, supported by strong market evidence. -
Valuer-General Victoria v WSTI Properties 490 SKR Pty Ltd [2025] HCA 23 (Read More)
This High Court decision clarified the treatment of heritage overlays in site value assessments, ultimately favouring the Valuer-General and setting aside prior appeal decisions.
Key Considerations Before Lodging an Objection
Based on recent case outcomes, property owners should be mindful of the following:
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Over-reliance on narrow or selective sales evidence
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Failure to fully consider zoning and planning overlays
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Overstating minor constraints as material detriments to value
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Insufficient evidence regarding holding costs or development feasibility
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Missing critical timing requirements or lacking appropriate expert support
Final Thoughts
A successful land tax objection requires more than simply disputing a valuation – it demands a well-prepared, evidence-based approach supported by relevant market data and planning considerations.
If you are considering an objection or would like to better understand your position, please reach out to a member of our team to discuss your options.
How We Can Help
At Gross Waddell ICR, we assist property owners in assessing whether a land tax objection is worth pursuing and how to approach it strategically.
For a confidential discussion, please contact our team.
