Estimate Potential Windfall Gains Tax
Calculate an indicative tax amount where a Victorian planning rezoning has significantly increased the value of your land.
See How Rezoning Can Affect Your Potential Tax
A significant uplift in land value can create a new tax consideration following certain Victorian planning changes.
- Enter the relevant taxable value uplift resulting from the rezoning.
- See how different uplift amounts can produce significantly different liabilities.
- Use the calculation to prepare for property and transaction planning.
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Windfall Gains Tax Questions Answered
Rezoning can raise questions about valuation, tax timing and exemptions. Here are the key points property owners should know.
What is windfall gains tax in Victoria?
Windfall gains tax can apply where a government rezoning increases a property’s value by more than $100,000. The tax commenced on 1 July 2023 and is generally imposed on the landowner at the time the rezoning takes effect.
How is the taxable value uplift calculated?
The taxable value uplift is generally the difference between the land’s capital improved value before and after the rezoning. Valuer-General Victoria determines the relevant valuations.
What windfall gains tax rates apply?
For taxable uplifts between $100,000 and $500,000, 62.5% applies to the portion exceeding $100,000. For uplifts of $500,000 or more, the tax is generally 50% of the full uplift.
Does every rezoned property attract windfall gains tax?
No. Various exemptions and exclusions apply, including certain residential land, charitable land and specified rezonings. Up to two hectares of qualifying residential land can be exempt in relevant circumstances.
Can payment of windfall gains tax be deferred?
Eligible landowners may defer all or part of the liability, generally until the next relevant dutiable transaction or 30 years after the rezoning, whichever happens first. Interest can apply to deferred amounts.
Can a vendor simply charge the purchaser for an assessed liability?
For relevant contracts entered into from 1 January 2024, a vendor is generally prevented from directly passing a known assessed windfall gains tax liability to the purchaser through the contract, though exceptions can apply to some larger commercial transactions.
Planning a Transaction After a Rezoning?
Speak with Master Key Conveyancing about the property and settlement considerations that may affect your next transaction.