Investors, holiday homeowners and commercial property holders will pay almost $5 billion of Victoria’s planned $8.6 billion COVID-19 debt levy over the next four years as a result of lower tax-free thresholds, higher rates and extra fixed payments on their land tax assessments.

In Tuesday’s budget, Treasurer Tim Pallas said the state would raise an additional $1.15 billion next year alone by cutting the tax-free threshold for land tax from $300,000 to $50,000, and levying temporary fixed charges of $500 for properties up to $100,000 in value and $975 on those up to $300,000.