Land tax
Land tax is an annual tax assessed on the total taxable land owned by a landowner. The taxable value of land is the municipal value provided by the relevant municipality.
The 2008-09 Budget provides an increase of approximately 10 per cent to all tax thresholds, increasing the tax free threshold from $225 000 to $250 000 and reduces the top land tax rate from 2.5 per cent to 2.25 effective from the 2009 land tax year.
The 2008-09 Budget also extends the exemptions for aged care facilities, supported residential care services and rooming houses, announced in the 2005-06 Budget, to include facilities that which cater to groups such as young people with disabilities.
For further information about land tax rates, exemptions and thresholds please visit the website of the State Revenue Office
Payroll tax
The 2008-09 Budget reduces the payroll tax rate to 4.95 per cent, effective 1 July 2008. Under previous reforms announced by the government, the payroll tax rate was already scheduled to fall from 5.05 per cent to 5.0 per cent from that date.
The 2008-09 Budget introduces a further 0.05 percentage point reduction. This additional reduction benefits more than 28 000 businesses by a further $170 million over the next four years and takes the payroll tax rate to below five per cent for the first time since the mid 1970s.
New South Wales and Victoria have harmonised payroll tax legislation from 1 July 2007, including common definitions and exemptions, that will reduce payroll tax paperwork for around 8 000 businesses with operations in both New South Wales and Victoria. In addition, Tasmania has also harmonised their payroll tax legislation with that of Victoria and New South Wales from 1 July 2008.
Motor vehicle duty
As part of the 2007-08 Victorian Budget, motor vehicle duty was cut on purchases of new passenger cars valued between $35,000 and $57,009. The saving on a $30 000 car is $450.
| Market value of vehicle | Duty payable |
| For motor vehicles not previously registered: | |
| Passenger cars |  |
| $ 0 - $ 57 009 | $5.00 per $200 or part thereof on entire price |
| $ 57 010 or more | $10.00 per $200 or part thereof on entire price |
| Other vehicles | |
| All values | $5.00 per $200 or part thereof on entire price |
| |
| For motor vehicles previously registered, regardless of where: | |
| All values | $8.00 per $200 or part thereof on entire price |
