Labor's Ben Carroll on Sunday pledged to gradually remove the tax on land valued at more than $50,000 that did not house the owner's primary residence.
The land tax threshold was lowered in 2023 by his party's then-premier Daniel Andrews to help tackle debt following COVID-19-era spending splurges.
He cut the point at which the tax kicked in from $300,000 to $50,000 in a change slated to last until 2033.
But if Labor wins the November election, the tax-free threshold would be raised by $25,000 a year before returning to the pre-Andrews figure of $300,000 in 2033.
The opposition announced a similar policy in May, but it pledged to raise the threshold by $50,000 a year to reach $300,000 by 2031/32.
One Nation has also said it would wind back the land tax if elected to government but has yet to provide details on its plan.
In making the announcement, Mr Carroll sought to differentiate himself from previous party leaders including Jacinta Allan, who resigned as premier in August after losing the majority backing of Labor MPs.
"I'm a new premier and this is my new direction," he said.
The tax changes would apply to more than 250,000 Victorians, potentially saving them up to $975 a year, according to the government.
The levy operates on a sliding scale and is based on a site's unimproved land value, which excludes the value of buildings.
The budget would take a hit of $230 million over five years, but the impact would be eased by delaying level crossing removals, consolidating the government car fleet and cutting public service executive roles, Labor said.
Treasurer Colin Brooks said the government had listened to community feedback about the tax, adding current circumstances were different to those at the time the higher levy was introduced.
But the coalition accused Labor of extending the bill for Victoria's COVID-19 lockdowns, which were among the longest in the world.
"This is simply extending a tax ... that the Labor government put on Victorians because they locked them down over COVID and then put a COVID debt levy on them," Opposition Leader Jess Wilson said.
The Liberals and Nationals unveiled a plan on Sunday to slash hospital wait times by giving public patients the choice to undergo surgery at a private hospital at no cost.
The policy, dubbed SurgerySooner, is based on a similar program already operating in Queensland and aims to deliver an extra 25,000 surgeries a year.
Industry peak body the Australian Private Hospitals Association, which championed the move, called it a win-win for hospital operators and patients.
Also on Sunday, thousands of motorcycle riders are due to converge on state parliament in Melbourne to protest deteriorating road conditions.
The rally has been spurred by the death of rider Peter "Tiki" Mason when he hit a pothole in mid-September.
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