A David and Goliath battle is brewing, with a Melbourne-based business owner suing the state government over what he says is a “staggering” increase in land tax over the past three years.

Business owner Nigel Carter owns two pockets of land in Aireys Inlet and decided to take legal action after his neighbour lodged an objection.

“It’s just ridiculous what they’re charging,” Mr Carter told Tony Jones.

Press PLAY to hear the ‘staggering’ amount of land tax he’s been hit with

“That’s killing investment in this state, and that’s taking away incentives for people to buy.”

Legal expert Justin Henderson then provided an explainer on how land tax is evaluated, as many landowners accuse the state government of dramatically overvaluing their properties.

Mr Henderson said if Mr Carter’s legal challenge is successful, “it means that every land tax assessment might be open to challenge”.

Press PLAY to hear the full legal explainer on 3AW

“I don’t think there’s much chance the government is going to be spooked,” Mr Henderson said on 3AW Mornings.

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