Calls for probe into flawed Latrobe Valley land tax bills

Calls are mounting for a formal investigation into the state’s property assessment regime following widespread reports of valuation inaccuracies across the Latrobe Valley and beyond. Martin Cameron, the Member for Morwell, has formally requested a probe into what he describes as stacked land valuations, citing an influx of correspondence from residents and small business owners struggling with tax obligations that have surged despite an absence of capital improvements.

According to Mr. Cameron, the current framework unfairly penalizes landowners by requiring them to satisfy tax bills calculated from contested figures before engaging in a formal objection process to potentially recoup funds. Mr. Cameron maintains that the state is facing a debt trajectory projected to reach $186 billion, leading to what he characterizes as a brazen and blatant cash-grab through the land tax system.

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The intensity of these disputes has been underscored by high-profile valuation discrepancies. As of 12 November 2025, reports indicated that Emmaly and David Gridley had twice successfully challenged the valuation of their rural property in Moe. Despite the land lacking essential services such as electricity and running water, it was valued at $2.3 million this year, resulting in a $32,710 tax bill. In the preceding year, the site was valued at $1.6 million, triggering a $20,760 demand. The couple originally purchased the land for $440,000 in 2020. The Valuer-General’s office has since attributed these specific errors to the use of incorrect planning information during the assessment process.

The broader environment for property owners has shifted significantly since 2023, when the Victorian government designated the Valuer-General as the sole authority for all land valuations, centralizing a role previously held by local councils. Tax lawyer Thomas Abraham observes that this transition has facilitated a more aggressive approach to assessments. According to Mr. Abraham, this change has subjected properties previously viewed as low-risk—including those held by farmers and charities—to heightened scrutiny.

The consequences of these rising costs are now disrupting commercial operations. Matthew Fogarty, who manages a sheet metal business in Dandenong, faces potential displacement after his landlord received a $55,851 land tax bill. Mr. Fogarty indicates that the landlord may be forced to sell the factory premises, leaving the future of the manufacturing operation uncertain. He noted that the business is currently evaluating whether it remains viable to continue operating at the property’s current size or if relocation or closure is necessary.

These developments occur against the backdrop of the state government’s efforts to address its total debt burden, which budget documents project to reach $194 billion within four years. To support debt reduction, the state has implemented several fiscal measures, including expanded payroll and land taxes. Furthermore, the Vacant Residential Land Tax has been extended to apply on a statewide basis, impacting holiday homeowners, while the absentee owner land tax surcharge for foreign-based entities has doubled from 2 per cent to 4 per cent.

Mr. Abraham highlights that these tax shifts are causing significant concern among international investors, some of whom are now weighing the possibility of withdrawing operations from the state. He notes that for certain clients, these surcharges represent costs exceeding $1 million. For property owners currently navigating their own assessments, Mr. Cameron’s office has established a channel for reports of perceived errors, inviting residents to submit concerns via email.

Overview of Fiscal and Valuation Context

• Valuation Authority: The Valuer-General has replaced local councils as the singular authority for property valuations across Victoria.
• Debt Projection: Official budget papers indicate that the state’s total debt is expected to reach $194 billion within the next four years.
• Surcharge Adjustments: The absentee owner land tax surcharge has been increased to 4 per cent to target foreign-based companies.
• Objection Procedures: Under current policy, landowners are expected to pay assessed amounts in full before initiating a formal objection to recover funds.

As disputes continue, the Valuer-General’s office maintains that previous high-value assessments, such as those impacting the Gridleys, stemmed from isolated planning data errors. Meanwhile, landowners awaiting outcomes on their objections remain obligated to adhere to the current tax payment requirements.