Impact of rezoning on Windfall Gains Tax

The Windfall Gains Tax applies to land in Victoria that receives a taxable value uplift of more than $100,000 as a result of a rezoning, such as from Farming Zone (FZ) to Industrial 1 Zone (IN1Z).

The tax is triggered when a planning scheme amendment changes the zone of the land. The Valuer-General Victoria determines the uplift in capital improved value of the land before and after rezoning. Landowners may apply to defer payment (in full or part and Interest applies) until the property is sold, developed, or 30 years after the rezoning, whichever occurs first.

For more information, please visit the State Revenue Office (SRO) website for detailed information at https://www.sro.vic.gov.au/windfall-gains-tax.

We recommend you seek advice from your accountant or request a private ruling from the SRO to understand how the tax may apply to your circumstances.

We will provide further updates on the timing of the rezoning as the planning scheme amendment progresses. The rezoning is anticipated to occur in the second half of next year (after the end of the 2025–26 financial year) subject to changes.