Prosper Australia today expressed deep disappointment at the Victorian Government’s continued failure to implement value capture mechanisms in its recent upzoning announcements. By allowing landowners to reap windfall gains without returning a fair share to the community, the government has missed a vital opportunity to fund essential infrastructure and public services.
“While we welcome efforts to increase housing supply, upzoning without value capture represents a giveaway to land speculators at the expense of the broader community,” said Rayna Fahey, spokesperson for Prosper Australia. “When land values skyrocket due to planning changes, that uplift is created by public policy—not by individual landowners. It is only fair that a portion of that increase is reinvested in the community.”
Prosper Australia has long advocated for policies such as windfall gains taxes, infrastructure levies, and site-specific contributions to ensure that the public—not just private landowners—benefits from planning decisions. “The Government recognises the economic value that is created by rezoning and has implemented the Windfall Gains Tax to capture socially created rents. But the exclusion for residential-to-residential rezoning represents a major loophole which exists to the detriment of Victorian communities”.
Prosper Australia calls on the government to urgently reconsider its approach and implement fair and effective policies to ensure that upzoning delivers benefits for all Victorians, not just landowners.
