ARTICLE · 31 MAY 2023

Navigating the Windfall Gains Tax

Madgwicks

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Discusses key elements of the WGT Act, exemptions & exclusions, & provides some strategies for land owners & developers.

AustraliaTax

James Christodoulakis

Navigating the Windfall Gains Tax: Implications and Risk Management for the Property Industry

In brief

The Windfall Gains Tax (WGT), implemented by the Victorian Government, is one of the most significant State tax regime changes to affect the property industry since the introduction of the Growth Area Infrastructure Contribution.

The Windfall Gains Tax and State Taxation and other Acts Further Amendment Act 2021 (WGT Act) establishes a new tax on the uplift in land value that occurs as a result of a planning scheme amendment to change the zoning of certain land in Victoria on or after 1 July 2023. This tax regime poses new challenges for landholders, property developers, lenders and those engaging in land banking.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Madgwicks is a member of Meritas, one of the world's largest law firm alliances.

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