When you buy a property, it's crucial to think about ongoing costs like land tax. For many rural and lifestyle properties in Victoria, those annual land tax bills can pile up, especially if the property isn’t your main home.
If you’re considering a Cassinia Properties conservation property, there’s a significant perk you should be aware of…
Properties protected by a Trust for Nature conservation covenant may be exempt from land tax.
Starting in the 2024 land tax year, this exemption acknowledges the Victorian Government’s recognition that landowners who commit to permanently conserving their land are doing a service for everyone, helping to preserve biodiversity, wildlife habitats, and climate resilience.
For potential buyers, this means you’re not just investing in a property with ecological and lifestyle benefits, but you could also save a substantial amount on land tax over the years. So is the property you're eyeing exempt? Let's break it down.
What’s the exemption?
Beginning with the 2024 land tax year, under the State Revenue Office (SRO) of Victoria land protected by a conservation covenant with Trust for Nature - registered on the title - will be exempt from land tax. It’s important to note that this exemption only applies to the part of the land that’s actually covered by the covenant. Any land that isn’t under the covenant will still be subject to assessment. This is particularly relevant for properties that are partially covenanted or divided into different usage zones.
Who qualifies?
- The landowner must have a registered deed with Trust for Nature
- Only Trust for Nature covenants qualify (other types of conservation agreements, e.g. local government Section 173 or DEECA covenants do not receive this exemption)
My property meets the requirements, now what?
Here’s how and when to apply:
- Receive your land tax assessment - these are issued between mid January and late June each year.
- Apply for the exemption via SRO’s My Land Tax portal (from around April), or contact SRO online or in writing.
- Provide:
- Your customer number
- The property address
- What the land is used for (e.g. home, primary production, etc.)
- A copy of the covenant deed
- The commencement date or the percentage/area covered by the covenant
If SRO rejects, you may need to submit a recent title search showing the registered covenant; Trust for Nature can help arrange this.
Why this matters for Cassinia Properties Owners
Cost savings & cash flow
In Victoria, land tax kicks in at a surprisingly low threshold ($50k site value for individuals). Many bushland blocks or vacant lots can come with hefty land tax costs, unless they’re in covenanted areas. By structuring your property as partially covenanted, you can significantly lower its taxable value.
Conservation and legacy
These voluntary, permanent covenants are designed to protect biodiversity for the long haul. This exemption is one way that governments are acknowledging and rewarding private land stewardship.
A unique selling point in the market
Not many developments combine ecological stewardship with financial benefits in one neat package. This benefit increases the value of a property entering the market again sometime in the future!
Things to take into account
- Vic only: This exemption applies strictly to land in the state of Victoria.
- Partial coverage: If your covenant covers only part of the property, exemption is only for that portion.
- Principal place of residence (PPR) or primary production land may also offer other exemptions - but those generally don’t overlap with the covenant benefit unless carefully structured.
