Tax changes will significantly impact the real estate sector in Victoria
As announced in Victoria’s State Budget on May 21 2021, Victoria will be introducing a new 50% windfall gains tax’ for rezoned land and also increasing land tax and stamp duty rates. These tax changes will significantly impact the real estate sector in Victoria.
Windfall gains tax for rezoned properties
A new windfall gains tax will be introduced from July 1 2022. This new windfall gains tax will impose tax at 50% for increases in value above AU$500,000 (approximately $377,993) which result from a rezoning decision from the local council. Lower taxation rates will apply to value increases of between AU$100,000 to AU$500,000.