Victoria’s peak real estate group has warned sweeping property tax reforms could come back to haunt the state government at the next election.

A 0.25 per cent increase in land tax for properties worth more than $1.8m is expected to generate $1.5bn for the treasury.

Tweaks will also see buyers spending $2m or more on a home pay 6.5 per cent stamp duty instead of 5.5 per cent, while the government would claim half the money made in sales where land has been rezoned prompting a $500,000 or more profit boost.