May’s Victorian Budget implemented a new windfall gains tax for properties whose value is boosted by a council rezoning. This tax will apply to properties where the value is boosted by more than $100,000, with a 50% tax on windfalls above $500,000.
The clearest indication that this windfall tax is good policy has come from the Housing Industry Association (HIA), which has slammed the tax:
The Windfall Gains Tax is only a windfall for the Victorian Government. For every day Victorians, it’s a slowing of the state’s economy and a tax on Victorian jobs at the worst possible time, as the state rebuilds from the world’s longest COVID pandemic lockdown.
