We offer expert legal advice in relation to Windfall Gains Tax matters. Landowners and developers who own or acquire land that has been rezoned will need to have an understanding of the Windfall Gains Tax imposed by the Victorian State government.
We can help in a variety of ways if you have a liability and need advice. Our windfall gains tax lawyers can assist by providing advice, negotiate on your behalf with the State Revenue Office, and in dispute resolution and litigation matters.
Windfall Gains Tax applies if a relevant rezoning takes place from 1 July 2023 and the taxable value uplift – the difference between the capital improved value of the land before (CIV1) and after the rezoning takes effect (CIV2) resulting from the rezoning is more than $100,000.
Different rates of windfall gains tax apply based on the taxable value uplift as follows:
It is important to note that when the taxable value uplift of land is calculated, all land owned by the person or group subject to that particular rezoning is taken into account.
Under the transitional provisions, no windfall gains tax applies if the rezoning relates to pre-existing contracts of sale and options executed before 15 May 2021 or in relation to rezonings underway before 15 May 2021.
The rules for each of these transitional provisions are very detailed and strict. To avoid paying windfall gains tax, a taxpayer must meet all these specific requirements.
Our tax team can provide assistance by guiding you through the intricate legislative requirements for each transitional provision. We’ll work diligently to ensure that you meet all the necessary criteria to secure relief from windfall gains tax.
Compared to other state taxes, the windfall gains tax provisions do not presently contain many exemptions or waivers.
However, there are some exemptions/waivers that apply such as:
While not strictly an exemption/waiver per se, windfall gains tax also does not apply to an “excluded rezoning” including for example:
If a taxpayer is liable for windfall gains tax, the taxpayer has the option to defer payment of the tax until the earlier of:
If a deferral is elected, then the windfall gains tax deferred attracts interest at the prevailing 10-year Treasury Corporation of Victoria bond rate. In such situations, seeking expert legal advice is highly recommended to navigate the complexities of this process and make informed decisions. Our tax team is here to provide the guidance and support you need.
There are 2 main avenues to object to a windfall gains tax assessment:
If you are a landowner or associated professional and need advice regarding the windfall gains tax we have expertise and can provide clarity to an any queries you may have.
Our lawyers have a deep understanding of the law and also the practical expertise of working with the State Revenue Office. We can quickly advise you and provide you with clarity on your obligations.
If there is a dispute regarding the valuation methodology or assessment, we work through methodically to ensure that the assessment is correct.
Speak to one of our experienced windfall gains tax lawyers today on 1300 907 335 to get clarity on your matter.
You want to know that you are getting advice and real solutions. You not only want a lawyer who has strong experience and knowledge in legal matters, but a lawyer who can also navigate you through the commercial realities.Request a meeting