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“This is gross incompetence by the state government of Victoria and VGV in overvaluing properties,” Carter’s statement of claim says.
Carter alleges the properties are now overvalued by between $295,000 and $450,000, and said other neighbours’ properties were greatly overvalued.
“I don’t mind paying land tax, but I will pay a fair land tax on the basis of a fair valuation,” he said.
Carter said the government “hated” property owners and believes he is unfairly shouldering the burden of the state’s large debt. He is seeking a refund of $24,042 from the State Revenue Office.
The state government has significantly boosted its takings from land tax over the past five years. In 2020, it took in $3.5 billion from the tax but by 2024 that increased to $5.9 billion.
Commercial real estate agent Glyn Bosisto believes there has been an increase in commercial land overvaluations since 2023, when the Victorian Valuer-General took over all valuations from local councils.
He’s assisted numerous clients in lodging objections and has accused the Valuer-General of using an algorithm to determine property values. This claim has been denied by the government.
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“We call it a form of robo-debt for land tax,” he said, accusing the system of being “set up to gouge landowners.”
Bosisto said that unlike previous council valuations, which were typically conservative to avoid owner objections, the new valuations were “frequently in the very optimistic range and rarely favour the landowner”.
He suspects that “the Valuer-General is not checking every valuation because while most are optimistically strong for upside, others can also be wrong for the downside”.
Shaun Noble, director of recreational vehicle manufacturer Golstream RV, said his business’ land tax bill increased more than 300 per cent from $24,000 in 2023 to around $109,000 in 2024. He said the government increased the land valuation by 100 per cent in that period.
“This along with insurance and now with council rates and the emergency services levy, it’s crippling small business,” he said.
“[The government] is that broke they just keep looking in the wishing well. I think it’s disgusting.
“In the end they are attacking the middle class.”
Property Council Victoria executive director Cath Evans said she frequently heard from property owners – both residential investors and commercial landlords – who felt their valuations took significant and unpredictable jumps.
“This leads to surprise increases in land tax, which many feel are unreasonable when comparable properties are selling for much less,” she said.
“It is a serious concern. We’ve seen many investors receive valuations that either have to be absorbed or passed through to tenants and customers and increases financial stress all around.”
Opposition finance spokeswoman Bridget Vallence said the government had serious questions to answer about hikes in land valuations that had driven up land tax bills for families and businesses.
Shadow treasurer James Newbury said the state’s land tax system was deeply unfair, and that Labor was presiding over a property tax regime designed to prop up its giant budget debt.
A state government spokesman said the Valuer-General was an independent statutory body.
“All valuations are made at arms-length of government – as is appropriate,” he said.
“It would be inappropriate to comment on individual matters before the courts.”
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