Victoria’s tax office chases Benalla man for payments on property he sold 17 years ago

A man has told of his shock after Victoria’s tax office began chasing him for land tax payments on a Benalla property that he sold almost two decades ago.

A Benalla man was shocked to get a land tax bill for a property he sold 17 years ago.

Victoria’s tax office has been chasing a man for land tax payments on a property that he sold 17 years ago.

Tony Schneider sold a paddock on his Benalla property to his neighbour in 2008 before selling the rest of his Rayner Rd property three years later.

But in September last year, the State Revenue Office hit Mr Schneider with a land tax bill of $764.62.

According to the bill, which has been seen by the Herald Sun, the tax appeared to have been levied on the paddock.

It’s prompted questions about whether the tax grab was a bureaucratic bungle or an attempt to find cash from unsuspecting Victorians.

Mr Schneider thought the bill was a “crazy mistake”.

Mr Schneider, a physiotherapist who is a constituent of new Treasurer Jaclyn Symes, said he initially thought it was a “crazy mistake”.

“I thought it was just typical government bureaucracy, and initially I just accepted it as an error that can happen in these agencies,” he said.

Despite challenging the bill on September 11 last year, Mr Schneider is still yet to hear back from the State Revenue Office.

And he’s been ordered to pay the tax with the promise of being issued a refund if an investigation determines he was incorrectly charged.

“The thing that really annoys me is there seems to be a reversal of the presumption of innocence,” he said.

“I’ve been told that I have to pay the land tax until they determine that I don’t actually own the land. Normally the onus is the other way around and they have to prove to me that I do owe them money.”

He is still yet to hear back from the State Revenue Office. Stock image.

The state government expanded the land tax scheme in 2023, reducing the threshold from $300,000 to just $50,000.

Mr Schneider said those changes were hurting low and middle income earners, describing the move as a “desperate grab for money because they’re sinking quickly”.

Shadow Treasurer James Newbury, who this month hinted at making major changes to land tax if the opposition win government in 2026, said the case highlighted the state’s budget woes.

“Labor’s land tax attacks now seem less about tax collection and more like a professional criminal operation,” he said.

“Jacinta Allan has so desperately bankrupt the budget that her government is effectively committing armed holdups at the front doors of innocent Victorian homeowners.”

Mr Schneider lives in Jaclyn Symes’ electorate. Picture: Diego Fedele

A Victorian government spokesman said: “It’s not appropriate to comment while an investigation is being carried out.”

“Investigations of individual taxpayer matters is the responsibility of the State Revenue Office and it carries out this responsibility independent of the government,” he said.

A State Revenue Office spokeswoman also said she couldn’t comment on individual taxpayer matters but said it isn’t uncommon to conduct an investigation if information is obtained that indicates a customer may have an outstanding tax liability or is ineligible for a claimed exemption.

“If you have lodged an objection and your liability is due for payment, you should pay that amount on time while waiting for our decision,” she said.

“If you do not pay the assessed liability on time, daily interest will continue to accrue on the outstanding amount. If you have paid or partially paid your assessment, and we allow or partially allow your objection, you will receive a refund.”

Originally published as Victoria’s tax office chases Benalla man for payments on property he sold 17 years ago