Our Compliance Strategy 2023–27 sets out how we build confidence in the Victorian taxation system by supporting voluntary compliance, protecting revenue integrity and taking targeted action where obligations are not met.
We aim to maximise voluntary compliance by making it easier for customers to understand and meet their obligations. This includes education sessions, subscriber updates, website and portal enhancements, service improvements and programs that encourage customers to correct mistakes before enforcement is required.
Where customers fail to comply, we take proportionate action through our expert investigative teams, including applying the full force of the law when required.
We use investigations, audits, data analysis and targeted research to detect non-compliance. This work is supported by information from external agencies and third parties, including the Australian Taxation Office, financial institutions, utility companies, vendors, WorkSafe Victoria and other Australian state and territory revenue offices.
Our risk-based compliance focus areas over the last 12 months included:
- payroll tax (undisclosed wages, labour hire)
- land tax (incorrect exemptions, land owned by trustees and absentee owners)
- vacant residential land tax (missed notifications, incorrect holiday home exemptions)
- land transfer duty (related party transactions, incorrect exemptions and concessions)
- landholder duty (capital raisings, offshore transactions in corporate groups)
- First Home Owner Grant (residency requirements).
In 2025–26, our compliance activities resulted in over 13,500 investigations and $1,093.90 million in assessed liabilities, reflecting the value of targeted risk detection, investigation and enforcement work.
Intelligence from the community also supported our compliance approach. We investigated over 780 tip-off reports received through our website, phone or mail.
Voluntary compliance campaigns further encouraged customers to come forward and resolve errors. Customers who make voluntary disclosures are entitled to significant reductions in penalty tax and interest.