We are thrilled that the Victorian Parliament has passed a new Rezoning Windfall Gains Tax, as it’s a policy we have supported for many years.
As part of our efforts to support this tax, we wrote a Briefing Note to decision makers about its potential community gains. You can read it in full, here.
In summary:
- Rezoning windfalls are given, not earned
- Sharing rezoning windfalls is fair and efficient
- Sharing rezoning windfalls supports urban growth
- A rezoning windfalls tax is a disincentive to corruption
Our report also refutes some of the property industry’s arguments against the tax.
We will be keeping a close eye on developments with this tax. The Government has taken on board many of our suggestions, such as limiting deferral of the tax, minimal deductions and the inclusion of most residential and vacant land. However we will continue to pressure them to include exisiting residential homes, use market indexation rates for deferrals and limit deferrals further (4 years instead of 30).
Congratulations Prosper. The first rung in a big ladder.
Now a big need to educate the public about what this actually means.⁰
Great work, Prosper! Advocacy in Action :) This will be particularly important out were we live in Macedon Ranges as a lot of the rural land holdings want to be changed into a more commercially viable zoning – our draft Rural Land Use Strategy concerns me for this very reason… When do you think the tax will be enforced?
It doesn’t kick in until July 2023, unfortunately, and anything already in train will be exempt. But at least it’s something.
Unless the Stare and Federal Governments recommence the development of land in competition to private operators as the NSW Landcom did until the Coalition government handed it all back to developers. The current system only encourages developers to control the supply of lots to enable them to demand the highest price .