The Victorian government is facing renewed scrutiny over its management of the Land Registry, with a proposal to significantly increase fees raising concerns that the public is now paying the price for a 2018 concession sold to the private operator, SERV. Despite ceding control of land registry operations for 40 years, the government is moving to increase annual revenue from the registry, with a portion of the fee hikes explicitly intended to cover rising costs paid to the private operator.
The controversy stems from the 2018 commercialisation of the registry, a deal intended to deliver a massive windfall for the state. At the time, the government assured the public that it would maintain control over the prices Victorians paid for statutory land registry services. However, a separate agreement allowed SERV to peg its service fees—the charges the operator imposes on the government—to inflation. This arrangement has created a situation where the government is now attempting to increase consumer charges, in part, to keep pace with SERV’s escalating service fees.
A regulatory impact statement from the department indicates that the government proposes to increase its annual revenue from the registry’s fees from $150 million to $223 million. Under the proposal, registry fees would be cheaper for properties valued below $1 million, but would rise for higher-value properties. The national competition watchdog had previously recommended that the state periodically review the agreement with SERV to ensure the operator’s prices remained reflective of costs, preventing excessive profit. The current move to increase consumer charges instead of reviewing the concession agreement is seen by critics as a failure to protect the public interest.
Beyond the registry service fees, the government is also looking to bolster its general revenue through an overhaul of the ad valorem fee, a separate tax charged as part of the land transfer process. This fee, which is distinct from stamp duty, currently brings in hundreds of millions for the state budget but does not cover the cost of services. Consultation documents confirm that the fee is purely “a means of raising general revenue for the Victorian government”.
The proposal seeks to shift the financial burden by reducing the ad valorem rate for properties valued under $1 million while introducing a new, higher cap for those valued above $1.5 million. The department argues this change is the best option for “assisting housing affordability for transactions below $1 million”. However, the change is projected to increase state revenue over time if property prices continue to rise. Analysis suggests that if property prices increase by just 2 per cent a year, the tax could bring in $95 million more over a decade than if the current tax structure were retained.
The changes have been met with sharp political criticism. Opposition Leader Jess Wilson described the proposed change as a “desperate cash grab” from a government unable to manage its finances. “This latest tax hit will only place further cost-of-living pressures on Victorians and make our state a less attractive place to do business and invest,” she stated.
A spokesperson for the state government countered that the current fees, which have not been updated in 20 years, are “inadequate” and “currently don’t cover the costs of processing land sales”. With the Land Registry effectively privatised to SERV—partially owned by Aware Super, which is reportedly considering selling some of its stake—the decision to raise public fees to meet rising private operator costs places the state’s financial strategy and its long-term concessions under a harsh spotlight. The government has stated that no final decisions have been made.