There was silence amongst the audience at Monday's Community Forum when Megan Gidley & Sheree Coleman, representatives of the State Revenue Office spoke in detail about the Windfall Gains Tax introduced on 1 July 2023 in Victoria.
Landowners can accrue significant windfall gains when the value of their land increases due to the actions of government. These landholders may pay a tax on their windfall gains.
"It is vital that landowners are aware of the tax implications they may have following rezoning of land by Surf Coast Shire. There will be increasing demand for more residential land to accommodate the future housing needs of our growing population," said John Tebbutt, President of Growing Winchelsea.
A number of examples were given to explain the financial impact on landowners immediately following rezoning where the value of land may increase. One such example is detailed below:
If a rezoning of land results in a taxable value uplift of $300,000, windfall gains tax of $125,000 (($300,000 – $100,000) × 62.5%) is payable.
Once a notice of assessment is sent there is only 30 days given to pay and any objections to the assessment must be made within 2 months. Interest accrues on late or deferred payments.
"Many landowners are asset rich but cash poor, therefore it is important to have discussions now with your accountant or lawyer to consider financial strategies if you feel any land you own may be rezoned in the short to medium term," continues John.
"Growing Winchelsea has been provided with an information packet that has the links and more information about windfall gains tax. We are happy to provide access to the information packet, just contact Elaine Atkinson on mobile 0458009616 or email secretary@growingwinchelsea.com. Likewise if you have any further questions about windfall gains tax, please let us know and we can put you in contact with Megan," concludes John.
Here is link to the State Revenue Office website - sro.vic.gov.au/windfall-gains-tax
