Getting to grips with Victoria’s windfall gains tax
Victoria’s new windfall gains tax on the valuation upside from rezoning land kicks in next year. But the coming impost is already affecting new projects in the state.
If you own land in Victoria, and the value increases due to a rezoning, is that equivalent to winning lotto? The Victorian Government invites you to make this comparison having named its tax on land value uplifts the “windfall gains tax”.
The tax applies to land value uplifts attributable to a “WGT event” (i.e. most rezonings) that occur on or after July 1, 2023. Transition exemptions apply for land subject to a contract or option before May 15, 2021, as well as for land subject to certain rezoning processes commenced prior to that date. Further, the tax will not generally apply to land already subject to growth areas infrastructure contributions.
