Land tax scandals prompt calls for Auditor General to probe SRO, Valuer General

Victoria’s finance watchdog has been called on to probe the state’s “systematically broken” land tax regime after a series of false, dodgy and inflated bills sparked accusations of a multi-tiered Allan government tax grab.

One of Victoria’s peak property bodies has slammed the Allan government’s ruthless land tax regime, warning inaccurate property valuations and inflated bills could send home prices soaring.

Urban Development Institute of Australia – the peak industry body for urban development – Victorian chief executive Linda Allison said she had received several reports about “errors in calculations, incorrect land included, incorrect assumptions, and high valuations for land not deemed developable”.

“Our members have told us that they have been lodging land tax valuation objections on many projects across Melbourne in recent years,” she said.

“The very high land tax costs inevitably get passed onto the homebuyer.”

It comes as Victoria’s finance watchdog is called on to probe the state’s “systematically broken” land tax system as shoddy property valuations send bills and council rates through the roof.

Beach box owners around Port Phillip Bay last year were incorrectly issued land tax bills of up to $5000. Picture: iStock

Both the State Revenue Office and the Valuer General’s office have been called out over the errors, prompting the opposition to request an investigation by the Auditor-General.

Shadow Treasurer James Newbury said the “systemically broken” land tax system must be “independently reviewed”.

“There are too many mistakes for it to be coincidence,” he said.

Treasurer Jaclyn Symes has also come under pressure to reverse the latest land tax hike – introduced in 2023 to plug Covid debt – after an extra 380,000 Victorians were slugged for the first time year.

Victorian Chamber of Commerce and Industry boss Paul Guerra warned the tax hike was stifling investment and that business owners – struggling to shoulder the high taxes – have been unable to sell off properties because “there’s not buyers who are wanting to come into the environment that is Victoria”.

Property Council of Australia executive director Cath Evans called on Treasurer Symes to “actively review the tax burden to Victorian property owners” before the state budget.

As revealed by this masthead, unsuspecting Victorians are being chased by the State Revenue Office to pay dodgy land tax bills on properties they no longer own, while beach box owners around Port Phillip Bay last year were incorrectly issued land tax bills of up to $5000.

Land tax only applies to owners of investment properties, holiday homes, commercial properties or vacant land.

The Sunday Herald Sun has uncovered a series of false, dodgy and inflated land tax bills, sparking accusations of a multi-tiered Allan government tax grab.

Emmaly and David Gridley were told the value of their 4.45ha block in Moe had soared by 422 per cent over a four-year period. Picture: Office of Wayne Farnham MP

The couple has spent hours fighting the Valuer General’s office over the huge increase. Picture: Office of Wayne Farnham MP

In the latest tax scandal, Victorian small business owners from Moe to Dandenong have been slapped with soaring land tax bills and increased council rates after being notified of massive increases in the value of their property.

Tow truck business owners Emmaly and David Gridley were informed the value of their 4.45ha block of “mostly dirt” in Moe had soared by 422 per cent over a four-year period to a whopping $2.3m.

First bought for $440,000 in 2020, it was then revalued to $1.6m last year, pushing up land tax to more than $20,000 and council rates up by more than $3000.

After months of fighting, the Valuer General revalued the land at $770,000 – $830,000 less.

But a new assessment in 2025 sent the value soaring to a mammoth $2.3 million, bringing their land tax bill to over $30,000.

“It seems like the government is just penalising us unfairly without any straight forward way of setting the record straight,” she said.

Local Liberal MP Wayne Farnham, who has received a barrage of complaints to his office, accused the government of teaming up with the SRO to “deliberately over-inflate valuations to create more revenue”.

Kelly Bidesi and Bill Redmond are looking at moving their fit-out business Ramvek interstate after their land tax bill jumped from $32,310 to $123,075 in just two years.

“The state government is kicking us in the backside,” Mr Redmond said.

“Business owners are growing grey hairs and having heart attacks in Victoria.”

Kelly Bides and Bill Redmond may move their store Ramvek to NSW after their land tax bill jumped from $32,000 to $123,000 in just two years. Picture: Jake Nowakowski

A Warragul factory that was valued at $790,000 in 2024, prompting a land tax payment of $6466, skyrocketed to $1.2m in one year, increasing the bill to $11,368.

“This is simply revenue raising by over taxing the working man/investor,” property owner Colin Stoll said.

Retiree Noelle also watched her land tax bill on a Dandenong factory she leases out jump from $40,000 to more than $70,000 in one year.

In other cases, Geelong horse breeder Stuart French, 70, was hit with a land tax bill of $25,000, despite selling his previous home in 2021, while Physiotherapist Tony Schneider received an invoice on a property he sold in 2008.

A state government spokesman, however, claimed errors were “rare” and usually resolved within minutes. The SRO said it did not comment on individual cases.