Windfall Gains Tax Act 2021 (Victoria)

The Act imposes a targeted tax on increases in land value that result from a change of planning zone, described in the statute as a rezoning that is a WGT event (s 1; s 3 definition of rezoning; s 6). Liability for the tax arises at the moment the rezoning takes effect under the Planning and Environment Act 1987; the Act specifies that a WGT event occurs when the rezoning takes effect (s 7(1)-(2)). The person legally identified as the owner of the land when the WGT event occurs is the taxpayer (s 8). The Act is to be administered under the procedures of the Taxation Administration Act 1997 (s 4), and it binds the Crown in right of Victoria subject to the limitation that the Crown cannot be prosecuted for an offence under the Act (s 5).

Mechanically, the Act measures the windfall as the uplift in capital improved value between two valuation points (CIV2 minus CIV1), subject to deductions prescribed in regulations (s 11; s 10). CIV1 and CIV2 are sourced from valuations made under the Valuation of Land Act 1960 for most rateable land and non‑rateable leviable land (s 12), and for non‑rateable non‑leviable land CIV1 and CIV2 are to be values obtained for the Commissioner from the Valuer‑General or a valuer nominated by the Valuer‑General (s 13). The taxable value uplift is this value uplift less any regulatory deductions (s 10).

The statutory rate schedule is graduated. No tax is charged on taxable value uplift up to $100,000. Between $100,000 and $500,000 the marginal rate is 62.5% on the excess above $100,000. For taxable value uplift of $500,000 or more the rate is 50% of the taxable value uplift (s 9 and the table therein). Assessments aggregate all taxable uplifts for land a taxpayer owns that is rezoned by a WGT event; negative uplifts are ignored (s 16(1), (3)). The aggregated liability is apportioned to titles in proportion to each title’s share of the aggregated taxable uplift (s 16(2)).

Version No. 010

Windfall Gains Tax Act 2021

No. 52 of 2021

Version incorporating amendments as at
1 July 2025

TABLE OF PROVISIONS

Section Page

Part 1—Preliminary 1

1 Purpose 1

2 Commencement 1

3 Definitions 1

4 Taxation Administration Act 1997 5

5 Act binds the Crown 5

Part 2—Imposition of windfall gains tax 6

6 Imposition of windfall gains tax 6

7 When does liability for windfall gains tax arise? 6

8 Who is liable for windfall gains tax? 6

Part 3—Assessment of windfall gains tax 7

Division 1—Rate of windfall gains tax 7

9 What is the rate of windfall gains tax? 7

Division 2—Determining taxable value uplift 7

10 What is the taxable value uplift of land? 7

11 What is the value uplift of land? 7

12 CIV1 and CIV2—rateable land and non-rateable leviable land 8

13 CIV1 and CIV2—non-rateable non-leviable land 8

14 Valuation of separate occupancies 9

15 Value uplift of land not separately valued 9

Division 3—How is windfall gains tax assessed? 10

16 Windfall gains tax assessed on aggregated basis and apportioned 10

17 Assessment of joint owners of land 11

18 Assessment of trustees 11

Division 4—Grouping provisions 11

19 Assessment of windfall gains tax in relation to groups 11

20 Constitution of groups 11

21 Groups of corporations, trusts and both 12

22 What are related corporations? 12

23 What is a controlling interest in a corporation? 13

24 Further provisions for determining whether corporations are related corporations 14

25 What are related trusts? 15

Division 5—General 16

26 Notice of errors in notice of assessment 16

Part 4—Deferral of windfall gains tax 18

Division 1—Preliminary 18

27 Definitions 18

28 Meaning of excluded dutiable transaction 19

29 Meaning of no consideration dutiable transaction 19

30 Meaning of relevant charitable land transaction 20

Division 2—Deferral of payment 21

31 Persons other than relevant transferees may elect to defer payment of windfall gains tax 21

32 Deferred windfall gains tax and accrued interest must be paid to Commissioner by due date 22

33 Apportionment of deferred windfall gains tax and rolled over windfall gains tax where there is a registration of a plan of subdivision of WGT land 23

34 Tax default if deferred windfall gains tax or rolled over windfall gains tax, and accrued interest, not paid on time 24

Division 3—General 24

35 Interest payable on deferred windfall gains tax 24

Part 5—Exemptions and waivers 26

Division 1—Residential land exemption 26

36 What is residential land? 26

37 Exemption in relation to residential land 29

Division 2—Other exemptions 30

38 Exemptions in relation to rezoning errors 30

39 Exemptions in relation to pre-existing contracts of sale and options 31

40 Exemptions in relation to rezonings underway before 15 May 2021 32

40A Exemption in relation to land owned by university 34

Division 3—Waivers 35

41 Waiver for charitable land 35

Part 6—General 36

42 Windfall gains tax is a first charge on land 36

43 Secretary to provide rezoning information to Commissioner 37

44 Regulations 37

═════════════

Endnotes 39

1 General information 39

2 Table of Amendments 42

3 Explanatory details 43

Version No. 010

Windfall Gains Tax Act 2021

No. 52 of 2021

Version incorporating amendments as at
1 July 2025

The Parliament of Victoria enacts:

Part 1—Preliminary

S. 1 substituted by No. 52/2021 s. 109.

1 Purpose

The purpose of this Act is to impose a windfall gains tax on the increase in the value of land resulting from a rezoning.

2 Commencement

(1) Section 1 and this section and Parts 7, 8, 10, 11, 12 (other than Divisions 2 and 6), 14 and 15 come into operation on the day after the day on which this Act receives the Royal Assent.

(2) Part 9 and Division 2 of Part 12 come into operation on 15 April 2022.

(3) The remaining provisions of this Act come into operation on 1 July 2023.

3 Definitions

(1) In this Act—

capital improved value has the same meaning as in the Valuation of Land Act 1960;

S. 3(1) def. of charitable land amended by No. 38/2023 s. 19(a).

charitable land means land, or part of land, that is—

(a) owned by a charity; and

(b) used and occupied by a charity exclusively for charitable purposes;

charity means—

(a) a charitable institution; or

(b) a person who holds land on trust for charitable purposes;

CIV1—see sections 12(a) and 13(1)(a);

CIV2—see sections 12(b) and 13(1)(b);

controlling interest—

(a) in relation to a corporation—see section 23; or

(b) in relation to a trust—see section 25(2);

corporation has the same meaning as in section 9 of the Corporations Act;

discretionary trust has the same meaning as in section 3(1) of the Land Tax Act 2005;

S. 3(1) def. of excluded rezoning amended by No. 38/2023 s. 19(b).

excluded rezoning means—

(a) a rezoning between schedules in the same zone; or

(b) a rezoning that causes land to be brought within the contribution area within the meaning of section 201RC of the Planning and Environment Act 1987; or

(c) the first rezoning of land that was in the contribution area within the meaning of section 201RC of the Planning and Environment Act 1987 immediately before that rezoning; or

(d) a rezoning that causes land that was not in a public land zone to be in a public land zone; or

(e) a rezoning that causes land that was in a public land zone to be in a different public land zone; or

(f) a rezoning that causes land to be in a zone declared under subsection (2)(a) to be an excluded zone; or

(g) a rezoning of land that, immediately before the rezoning, was in a zone declared under subsection (2)(b);

general valuation has the same meaning as in the Valuation of Land Act 1960;

group means a group constituted under Division 4 of Part 3;

joint owners means persons who are owners of land jointly or in common, whether as partners or otherwise;

S. 3(1) def. of non-rateable leviable land amended by No. 16/2025 s. 22(6).

non-rateable leviable land has the same meaning as in the Emergency Services and Volunteers Fund Act 2012;

non-rateable non-leviable land has the same meaning as in the Valuation of Land Act 1960;

owner, in relation to land, means—

(a) if the land is under the Transfer of Land Act 1958—the registered proprietor of the land within the meaning of section 4(1) of that Act; or

(b) if the land is not under the Transfer of Land Act 1958—the holder of an estate in fee simple in the land;

Planning Minister means the Minister administering Part 3 of the Planning and Environment Act 1987;

planning scheme means a planning scheme in force under the Planning and Environment Act 1987;

public land zone means a public land zone under a planning scheme;

rateable land has the same meaning as in the Local Government Act 1989;

related corporation—see section 22;

related trust—see section 25(1);

rezoning means an amendment of a planning scheme that causes land to be in a different zone from the zone that it was in immediately before the amendment;

taxable value uplift—see section 10;

S. 3(1) def. of valuation authority repealed by No. 50/2024 s. 99.

value uplift—see section 11;

Victoria Planning Provisions has the same meaning as in section 3(1) of the Planning and Environment Act 1987;

WGT event means a rezoning other than an excluded rezoning;

windfall gains tax means tax imposed by section 6;

zone means a zone under a planning scheme.

(2) The Treasurer, by notice published in the Government Gazette, may declare—

(a) a zone to be an excluded zone for the purposes of paragraph (f) of the definition of excluded rezoning in subsection (1); and

(b) a zone to be a zone for the purposes of paragraph (g) of the definition of excluded rezoning in subsection (1).

4 Taxation Administration Act 1997

This Act is to be read together with the Taxation Administration Act 1997 which provides for the administration and enforcement of this Act and other taxation laws.

5 Act binds the Crown

(1) This Act binds the Crown in right of Victoria and, so far as the legislative power of the Parliament permits, the Crown in all its other capacities.

(2) Nothing in this Act makes the Crown in any of its capacities liable to be prosecuted for an offence.

Part 2—Imposition of windfall gains tax

6 Imposition of windfall gains tax

Windfall gains tax is imposed on land that is rezoned by a WGT event.

Note

Part 5 sets out exemptions and waivers from windfall gains tax.

7 When does liability for windfall gains tax arise?

(1) Liability for windfall gains tax arises when the WGT event occurs.

(2) For the purposes of this Act, a WGT event occurs when the rezoning that constitutes the WGT event takes effect under the Planning and Environment Act 1987.

Notes

1 Section 14 of the Taxation Administration Act 1997 provides for notices of assessment and provides that tax is payable on or before the day specified in the notice.

2 See Part 4 for deferrals of windfall gains tax.

8 Who is liable for windfall gains tax?

The owner of the land when the WGT event occurs is liable to pay windfall gains tax on the land.

Note to s. 8 inserted by No. 38/2023 s. 20.

Note

The owner of land must not purport to require the purchaser under an option to purchase the land or a contract of sale of the land to pay an amount for or towards an assessed windfall gains tax liability. See section 10H of the Sale of Land Act 1962.

Part 3—Assessment of windfall gains tax

Division 1—Rate of windfall gains tax

9 What is the rate of windfall gains tax?

The rate of windfall gains tax is set out in the following table.

Item	Taxable value uplift	Rate of windfall gains tax
1	Not more than $100 000	Nil
2	More than $100 000 but less than $500 000	62⋅5% of that part of the taxable value uplift that exceeds $100 000
3	$500 000 or more	50% of the taxable value uplift

Division 2—Determining taxable value uplift

10 What is the *taxable value uplift* of land?

The taxable value uplift of land is the value uplift of the land less any deductions prescribed by the regulations.

11 What is the *value uplift* of land?

The value uplift of land is determined in accordance with the formula—

where—

CIV1 has the meaning given in—

(a) section 12(a) for rateable land and non‑rateable leviable land; and

(b) section 13(1)(a) for non-rateable non‑leviable land;

CIV2 has the meaning given in—

(a) section 12(b) for rateable land and non‑rateable leviable land; and

(b) section 13(1)(b) for non-rateable non‑leviable land;

**VU** is the value uplift of the land.

12 CIV1 and CIV2—rateable land and non-rateable leviable land

For rateable land or non-rateable leviable land that is rezoned by a WGT event—

(a) CIV1 is the capital improved value of the land contained in the valuation in force under Part II or IIA of the Valuation of Land Act 1960 (as the case may be) immediately before the WGT event occurs; and

(b) CIV2 is the capital improved value of the land contained in a supplementary valuation under Part IIB of the Valuation of Land Act 1960.

13 CIV1 and CIV2—non-rateable non-leviable land

(1) For non-rateable non-leviable land that is rezoned by a WGT event—

(a) CIV1 is the capital improved value of the land as at the relevant date contained in a valuation made for and on behalf of the Commissioner by the Valuer-General or a valuer nominated by the Valuer-General; and

(b) CIV2 is the capital improved value of the land as at the relevant date taking the WGT event into account contained in a valuation made for and on behalf of the Commissioner by the Valuer-General or a valuer nominated by the Valuer-General.

(2) For the purposes of this section, the Commissioner may request a valuation of any non-rateable non-leviable land from the Valuer-General or a valuer nominated by the Valuer-General.

(3) In this section—

relevant date means the date as at which rateable land or non-rateable leviable land was valued for the purposes of the valuation referred to in section 12(a).

14 Valuation of separate occupancies

(1) For the purposes of assessing windfall gains tax, the Commissioner may—

(a) use a valuation made under the Valuation of Land Act 1960 that has determined the value of each separate occupancy on land; and

(b) include in a notice of assessment a description of the occupancy on land.

(2) A valuation of occupancy on land made under the Valuation of Land Act 1960 is taken to be a valuation of land for the purposes of this Act.

15 Value uplift of land not separately valued

(1) This section applies if—

(a) it is necessary to determine CIV1 for any land (the relevant land); and

(b) the relevant land was not valued separately as at the relevant date; and

(2) CIV1 for the relevant land is determined in accordance with the formula—

where—

AL is the total area of the relevant land;

AO is the total area of the occupancy;

CIV1 is CIV1 for the relevant land;

CIVO is the capital improved value of the occupancy as at the relevant date.

(3) In this section—

relevant date means the date as at which rateable land or non-rateable leviable land was valued for the purposes of the valuation referred to in section 12(a);

total area, in relation to relevant land or an occupancy, means the area of the relevant land or occupancy plus the sum of the areas of each floor of a building on the relevant land or occupancy (whether above or below ground) other than the ground floor.

Division 3—How is windfall gains tax assessed?

16 Windfall gains tax assessed on aggregated basis and apportioned

(1) Subject to this Act, a taxpayer is to be assessed for windfall gains tax on the aggregated taxable value uplift of all the land owned by the taxpayer that is rezoned by a WGT event.

(2) The windfall gains tax is to be apportioned to land on each title in the same proportion as the proportion the taxable value uplift of that land bears to the aggregated taxable value uplift.

(3) In determining the aggregated taxable value uplift of all the land owned by the taxpayer that is rezoned by a WGT event, any negative taxable value uplifts must be ignored.

17 Assessment of joint owners of land

Joint owners of land are to be jointly assessed for windfall gains tax on the land as if the land were owned by a single person, without regard to—

(a) the separate interest of each joint owner; or

(b) any other land owned by any joint owner (either alone or jointly with someone else).

18 Assessment of trustees

Subject to Division 4, if land is held on trust, the trustee is to be assessed for windfall gains tax on the aggregated taxable value uplift of all the land that is subject to the trust, without regard to any land held by the trustee for any other trust or for the trustee's own benefit.

Division 4—Grouping provisions

19 Assessment of windfall gains tax in relation to groups

(1) Members of a group are to be assessed for windfall gains tax on the aggregated taxable value uplift of all the land owned by members of the group that is rezoned by a WGT event.

(2) Every member of the group is jointly and severally liable to pay windfall gains tax assessed in relation to the group.

20 Constitution of groups

(1) A group is constituted by all the persons forming a group that is not part of any larger group.

(2) If a person is a member of 2 or more groups, the members of all the groups together constitute a group.

(3) The fact that a person is not a member of a group constituted under a provision of this Division does not prevent that person from being a member of a group constituted under another provision of this Division.

21 Groups of corporations, trusts and both

(1) Corporations constitute a group if they are related corporations.

(2) If trusts are related trusts, the trustees of those trusts constitute a group.

(3) A corporation and a trustee of a trust constitute a group if the same person has, or the same persons have together, a controlling interest in the corporation and a controlling interest in the trust.

22 What are *related corporations*?

(1) For the purposes of this Division, corporations are related corporations in any of the circumstances specified in this section.

(2) Corporations are related corporations if one of those corporations—

(a) controls the composition of the board of the other corporation; or

(b) is in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the other corporation; or

(3) Corporations are related corporations if the same person has, or the same persons have together, a controlling interest in each of the corporations.

Note

Controlling interest is defined in section 23.

(4) Corporations are related corporations if—

(a) more than 50% of the issued share capital of one of those corporations (corporation 1) is held by the other corporation (corporation 2) together with the shareholders of corporation 2; and

(b) the percentage of the issued share capital of corporation 2 held by shareholders of corporation 1 is more than the difference between 50% and the percentage of the issued share capital of corporation 1 held by corporation 2.

(5) Corporations are related corporations if one of those corporations is a related corporation of a corporation of which the other of those corporations is a related corporation (including a corporation that is a related corporation of the other of those corporations because of one or more other applications of this subsection).

23 What is a *controlling interest* in a corporation?

For the purposes of this Division, a person has, or persons have together, a controlling interest in a corporation if—

(a) that person, or those persons acting together, can control the composition of the board of the corporation; or

(b) that person is, or those persons acting together are, in a position to cast or control the casting of more than 50% of the maximum number of votes that might be cast at a general meeting of the corporation; or

(c) that person holds, or those persons acting together hold, more than 50% of the issued share capital of the corporation.

24 Further provisions for determining whether corporations are related corporations

(1) For the purposes of this Division—

(a) corporations may be related corporations whether or not they own land in Victoria; and

(b) a reference to the issued share capital of a corporation does not include a reference to any part of it that carries no right to participate beyond a specified amount in a distribution of either profits or capital; and

(c) subject to paragraphs (d) and (e), any shares held or power exercisable by a person or corporation as a trustee or nominee for another person or corporation are taken to be also held or exercisable by the other person or corporation; and

(d) any shares held or power exercisable by a person or corporation by virtue of the provisions of any debentures of another corporation, or of a trust deed for securing any issue of any such debentures, must be disregarded; and

(e) any shares held or power exercisable by, or by a nominee for, a person or corporation (not being held or exercisable as mentioned in paragraph (d)) are taken to be not held or exercisable by that person or corporation if—

(i) the ordinary business of that person or corporation includes the lending of money; and

(ii) the shares are held or the power is exercisable only by way of security given for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money, not being a transaction entered into with an associate of that person or corporation within the meaning of the Corporations Act; and

(f) the composition of a corporation's board is taken to be controlled by a person or another corporation if the person or other corporation, by the exercise of a power exercisable whether or not with the consent or concurrence of any other person, can appoint or remove all or a majority of the members of the board.

(2) Subsection (1)(f) does not limit the circumstances in which the composition of a corporation's board is to be taken to be controlled by a person or another corporation.

25 What are *related trusts*?

(1) For the purposes of this Division, trusts are related trusts if the same person has, or the same persons have together, a controlling interest in each of the trusts.

(2) A person has, or persons have together, a controlling interest in a trust if—

(a) that person, or those persons acting together, can control the appointment of the trustee; or

(b) that person is, or those persons together are, entitled to more than 50% of the income or capital of the trust.

(3) For the purposes of subsection (2)(b), the Commissioner may determine that a person is, or persons together are, entitled to more than 50% of the income or capital of a discretionary trust even if that person or those persons have no present legal or equitable entitlement to the income or capital.

Division 5—General

26 Notice of errors in notice of assessment

(1) A person who is served with a notice of assessment of windfall gains tax in relation to a WGT event must notify the Commissioner of any error or omission in the notice relating to—

(a) any other land owned by the person when the WGT event occurred that was rezoned by the WGT event but is not specified in the notice; and

(b) in the case of a notice of assessment for land jointly owned by 2 or more owners, any other land owned by the joint owners when the WGT event occurred that was rezoned by the WGT event but is not specified in the notice; and

(c) if the person is a member of a group, any land owned by another member of the group when the WGT event occurred that was rezoned by the WGT event but is not specified in the notice.

(2) Notice of the error or omission must be given to the Commissioner within 60 days from the date of issue of the notice of assessment.

(3) If there is more than one owner of the land specified in the notice of assessment, it is sufficient compliance with this section if one of the owners provides the required information on behalf of all of them.

Part 4—Deferral of windfall gains tax

Division 1—Preliminary

27 Definitions

In this Part—

accrued interest means interest calculated under section 35;

dutiable transaction has the same meaning as in the Duties Act 2000;

excluded dutiable transaction has the meaning given by section 28;

excluded relevant acquisition means—

(a) a relevant acquisition described in section 78(1)(a) of the Duties Act 2000 that is an acquisition of an interest in a landholder solely from a pro rata increase in the interests of—

(i) all unit holders in the landholder where the landholder is a unit trust scheme; or

(ii) all shareholders of the landholder where the landholder is a company; or

(b) a relevant acquisition described in section 78(1)(b) of the Duties Act 2000;

landholder has the same meaning as in section 71 of the Duties Act 2000;

no consideration dutiable transaction has the meaning given by section 29;

relevant acquisition has the same meaning as in section 78 of the Duties Act 2000;

relevant charitable land transaction has the meaning given by section 30;

relevant transferee means a person who makes an election under section 29(2) or 30(2);

rolled over windfall gains tax means the amount of windfall gains tax a relevant transferee has elected to assume under section 29(2) or 30(2);

WGT land means the whole or part of the land on which the windfall gains tax is imposed under section 6.

28 Meaning of *excluded dutiable transaction*

For the purposes of this Part, each of the following dutiable transactions is an excluded dutiable transaction—

(a) the acquisition of an economic entitlement in relation to WGT land under Part 4B of Chapter 2 of the Duties Act 2000;

(b) the transfer of an estate in fee simple in WGT land in relation to which the transferee is registered as the registered proprietor pursuant to an application under section 49 of the Transfer of Land Act 1958;

(d) a relevant charitable land transaction.

29 Meaning of *no consideration dutiable transaction*

(1) For the purposes of this Part, a dutiable transaction relating to land is a no consideration dutiable transaction if—

(a) the transaction is a transaction relating to WGT land for which there is no consideration; and

(b) the transferee under the transaction makes an election under subsection (2).

(2) The transferee may elect to assume the liability to pay the whole of the deferred windfall gains tax and any accrued interest payable under this Part by making the election to the Commissioner in a form approved by the Commissioner.

(3) An election under subsection (2) must be made on or before the date of completion of the dutiable transaction.

(4) On completion of the dutiable transaction and acceptance by the Commissioner of an election under subsection (2)—

(a) the transferee becomes liable to pay the whole of the deferred windfall gains tax and any accrued interest payable under this Part; and

(b) the liability of the transferor to pay the deferred windfall gains tax and any accrued interest payable under this Part is extinguished.

(5) In this section—

consideration has the same meaning as in section 32A of the Duties Act 2000.

30 Meaning of *relevant charitable land transaction*

(1) For the purposes of this Part, a dutiable transaction relating to charitable land is a relevant charitable land transaction if—

(a) a WGT event has occurred in respect of the charitable land before the dutiable transaction and since that WGT event the charitable land has been such land continuously and exclusively; and

(b) the transferee under the transaction will continue to use the land as charitable land; and

(3) An election under subsection (2) must be made on or before the date of completion of the dutiable transaction.

(4) On completion of the dutiable transaction and acceptance by the Commissioner of an election under subsection (2)—

(a) the transferee becomes liable to pay the whole of the deferred windfall gains tax and any accrued interest payable under this Part; and

(b) the liability of the transferor to pay the deferred windfall gains tax and any accrued interest payable under this Part is extinguished.

Division 2—Deferral of payment

31 Persons other than relevant transferees may elect to defer payment of windfall gains tax

(1) A person (other than a relevant transferee) who is liable to pay windfall gains tax may elect to defer the payment of up to 100% of that tax.

(2) Subject to subsection (3), an election must be made to the Commissioner—

(a) in a form approved by the Commissioner; and

(b) before the day on which the windfall gains tax is payable.

(3) The Commissioner may accept an election on or after the day on which the windfall gains tax is payable.

(4) An election to defer the payment of the whole or part of the windfall gains tax under subsection (1) (including an election accepted by the Commissioner under subsection (3)) takes effect from the date on which the liability to pay the tax arises.

(5) A person who has deferred the payment of part of the windfall gains tax under this section must pay the part of the tax that has not been deferred by the day specified in the notice of assessment of windfall gains tax given to the person.

(6) If a part of the windfall gains tax that has not been deferred under this section is not paid by the day specified in the notice of assessment of windfall gains tax, the whole of the windfall gains tax becomes immediately payable as if the election of the deferral had never been made.

32 Deferred windfall gains tax and accrued interest must be paid to Commissioner by due date

(1) A person who has deferred the payment of the whole or part of windfall gains tax under section 31 must pay to the Commissioner the deferred amount and any accrued interest payable under this Part, within 30 days after—

(a) a dutiable transaction (other than an excluded dutiable transaction) occurs in relation to the WGT land; or

(b) a relevant acquisition (other than an excluded relevant acquisition) occurs in respect of a landholder who is the owner of the WGT land; or

whichever occurs first.

(2) A relevant transferee must pay to the Commissioner the rolled over windfall gains tax and any accrued interest payable under this Part, within 30 days after—

(a) a dutiable transaction (other than an excluded dutiable transaction) occurs in relation to the WGT land; or

(b) a relevant acquisition (other than an excluded relevant acquisition) occurs in respect of a landholder who is the registered proprietor of the WGT land; or

whichever occurs first.

33 Apportionment of deferred windfall gains tax and rolled over windfall gains tax where there is a registration of a plan of subdivision of WGT land

(1) This section applies if—

(a) the whole or a part of windfall gains tax is deferred under this Part; and

(b) there is a registration of a plan of subdivision of the land in respect of which that tax is imposed.

(2) On the registration of the plan of subdivision, the whole or part of windfall gains tax deferred under this Part (including rolled over windfall gains tax), and any accrued interest payable under this Part, (the deferred tax) is taken to be apportioned to each lot created under the plan of subdivision by reference to the area each lot bears to all of the lots created under the plan of subdivision.

(3) In this section—

lot has the same meaning as in the Subdivision Act 1988.

34 Tax default if deferred windfall gains tax or rolled over windfall gains tax, and accrued interest, not paid on time

A tax default occurs for the purposes of the Taxation Administration Act 1997 if a person does not pay—

(a) any windfall gains tax deferred under section 31, and any accrued interest, when due for payment under section 32(1); or

(b) any rolled over windfall gains tax, and any accrued interest, when due for payment under section 32(2); or

(c) the windfall gains tax that has not been deferred under section 31 by the day specified in the notice of assessment of windfall gains tax.

Division 3—General

35 Interest payable on deferred windfall gains tax

(1) Windfall gains tax that is deferred in whole or in part under this Part (including rolled over windfall gains tax) is subject to the payment of interest calculated on the deferred amount of the windfall gains tax on a daily basis.

(2) The amount of interest referred to in subsection (1) is to be calculated at the 10-year bond rate applying from time to time.

(3) For the purposes of this section, the 10-year bond rate in respect of any day is the average of the daily yields for the 10-year Treasury Corporation of Victoria bond (published from time to time by the Treasury Corporation of Victoria established under Part 2 of the Treasury Corporation of Victoria Act 1992) for the month of May in the financial year preceding the financial year in which the day occurs.

Part 5—Exemptions and waivers

Division 1—Residential land exemption

36 What is *residential land*?

(1) For the purposes of this Division, residential land is land that has a building affixed to it that in the Commissioner's opinion—

(a) is designed and constructed primarily for residential purposes; and

(b) may lawfully be used as a place of residence.

(2) Land is also residential land for the purposes of this Division if the Commissioner is satisfied that—

(a) a residence is being constructed or renovated on the land; and

(b) before the commencement of the construction or renovation—

(i) the land was capable of being lawfully used as a place of residence; or

(ii) there was a residence that was uninhabitable on the land; and

(c) on the completion of the construction or renovation, the land will be capable of being lawfully used as a place of residence.

(3) The Commissioner cannot be satisfied for the purposes of subsection (2)(a) unless a building permit has been issued for the construction or renovation.

(4) Despite subsections (1) and (2), land other than land used for primary production is not residential land unless the Commissioner is satisfied that the land is used primarily for residential purposes.

(5) Despite subsections (1) and (2) but subject to subsection (6), residential land does not include land that is capable of being used and occupied solely or primarily as—

(a) commercial residential premises and that may lawfully be used and occupied in that way; or

(b) a residential care facility and that may lawfully be used and occupied in that way; or

(d) a retirement village service and that may lawfully be used and occupied in that way.

(6) Subsection (5) does not apply to land in commercial residential premises, a residential care facility, a supported residential service or a retirement village on which there is a residence that is owned separately, and held on a separate title, from other land in the commercial residential premises, residential care facility, supported residential service or retirement village.

(7) In this section—

commercial residential premises has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth;

land used for primary production means land used primarily for—

(a) cultivation for the purpose of selling the produce of cultivation (whether in a natural, processed or converted state); or

(b) the maintenance of animals or poultry for the purpose of selling them or their natural increase or bodily produce; or

(d) commercial fishing, including the preparation for commercial fishing or the storage or preservation of fish or fishing gear; or

(e) the cultivation or propagation for sale of plants, seedlings, mushrooms or orchids;

residence means a building affixed to land that is designed and constructed primarily for residential purposes;

residential care facility means any premises—

(a) in which—

(i) a residential care service; or

(ii) a multi purpose service—

within the meaning of the Aged Care Act 1997 of the Commonwealth, is operated by an approved provider within the meaning of that Act; and

(b) in respect of which an allocation of residential care places is in effect under Division 15 of that Act;

retirement village means a complex containing residential premises (whether or not including hostel units) predominantly or exclusively occupied, or available for occupation, by retired persons under—

(a) a residential tenancy agreement or any other lease or licence; or

(b) a right conferred by shares; or

(c) the ownership of residential premises subject to a right or option of repurchase on conditions restricting the subsequent disposal of the premises—

other than a complex or premises that is or are a residential care facility or supported residential service;

supported residential service has the same meaning as in the Supported Residential Services (Private Proprietors) Act 2010.

37 Exemption in relation to residential land

(1) Windfall gains tax is not imposed on residential land (whether on one or more titles) that does not exceed 2 hectares if the land is the only residential land owned by a taxpayer that is rezoned by a WGT event.

(2) If residential land (whether on one or more titles) owned by a taxpayer that is rezoned by a WGT event exceeds 2 hectares, the taxable value uplift of the land on each title for the purposes of this Act is to be adjusted in accordance with the formula—

where—

AVU is the adjusted taxable value uplift of the residential land on that title;

**RL** is the total area of all of the residential land in hectares;

**VU** is the taxable value uplift of the residential land on that title calculated under Division 2 of Part 3.

Division 2—Other exemptions

38 Exemptions in relation to rezoning errors

S. 38(1) amended by No. 38/2023 s. 21(1).

(1) Windfall gains tax is not imposed on land that is rezoned by a WGT event if the Commissioner is satisfied that the rezoning constituting the WGT event is caused by an amendment (whether prepared under section 20A of the Planning and Environment Act 1987 or otherwise) to correct an obvious or technical error in the Victoria Planning Provisions or a planning scheme.

S. 38(1A) inserted by No. 38/2023 s. 21(2).

(1A) The Commissioner may consult the Secretary to the Department of Transport and Planning in determining whether a rezoning is a correcting WGT event.

(2) If a correcting WGT event results in a negative value uplift to land on which windfall gains tax has been assessed in respect of an original WGT event, windfall gains tax is not imposed on the land in respect of the original WGT event and—

(a) the Commissioner must reassess the windfall gains tax liability accordingly; and

(b) the taxpayer is entitled to a refund of any windfall gains tax and interest paid in respect of the original WGT event.

(3) Subsection (2) applies only if the owner of the land at the time of the correcting WGT event is the same as the owner of the land at the time of the original WGT event.

S. 38(3A) inserted by No. 38/2023 s. 21(3).

(3A) If a rezoning consists partly of a correcting WGT event and partly of a rezoning that is not a correcting WGT event in relation to the same land—

(a) any value uplift attributable to the correcting WGT event is to be ignored in assessing any windfall gains tax on the land; and

(b) for that purpose the Commissioner must seek the advice of the Valuer‑General as to the amount of value uplift attributable to the correcting WGT event.

(4) If payment of windfall gains tax affected by this section is deferred under Part 4, the Commissioner may make a reassessment under section 9 of the Taxation Administration Act 1997 for the purposes of this section more than 5 years after the initial assessment.

(5) In this section—

correcting WGT event means a rezoning referred to in subsection (1);

original WGT event means a rezoning that is corrected by a correcting WGT event.

39 Exemptions in relation to pre-existing contracts of sale and options

Windfall gains tax is not imposed on land that is rezoned by a WGT event if—

(a) the land is subject to a contract of sale entered into before 15 May 2021 that has not been completed by the transfer of the land before the WGT event occurred; or

(b) the land is subject to an option to enter into a contract of sale granted before 15 May 2021 that has not been exercised before the WGT event occurred or has been exercised and the contract of sale to which the option relates has not been completed before the WGT event occurred, but only if the terms of the contract of sale were settled at the time the option was granted.

40 Exemptions in relation to rezonings underway before 15 May 2021

(1) Windfall gains tax is not imposed on land that is rezoned by a WGT event if the Commissioner is satisfied that—

(a) the planning scheme amendment constituting the rezoning was prepared by a Council; and

(b) a request for the amendment was created and registered in the Amendment Tracking System by the Council before 15 May 2021; and

(i) approached the Council to request the rezoning; and

(ii) paid for, was liable to pay for, or had otherwise performed or procured relevant work in relation to the rezoning; or

(iii) paid, or was liable to pay, relevant costs to support consideration of the rezoning; and

(d) the total value of the relevant work and relevant costs referred to in paragraph (c)(ii) and (iii) was not less than the threshold amount.

(2) Windfall gains tax is not imposed on land that is rezoned by a WGT event if the Commissioner is satisfied that—

(a) the planning scheme amendment constituting the rezoning was prepared by or at the request of the Planning Minister; and

(b) the Planning Minister agreed before 15 May 2021 to prepare the amendment; and

(i) approached the Planning Minister to request the rezoning; and

(ii) paid for, was liable to pay for, or had otherwise performed or procured relevant work in relation to the rezoning; or

(iii) paid, or was liable to pay, relevant costs to support consideration of the rezoning; and

(d) the total value of the relevant work and relevant costs referred to in paragraph (c)(ii) and (iii) was not less than the threshold amount.

(3) In this section—

S. 40(3) def. of Amendment Tracking System amended by No. 38/2023 s. 22.

Amendment Tracking System means the system managed by the Department of Transport and Planning to register, track and process planning scheme amendments;

Council has the same meaning as in the Local Government Act 1989;

relevant costs means costs payable under regulation 6, 7 or 8 of the Planning and Environment (Fees) Regulations 2016;

relevant work means professional analysis or assessment that, in the Commissioner's opinion, is necessarily performed in preparing for or seeking a rezoning of land including but not limited to—

(a) surveying analysis; and

(b) engineering analysis; and

(d) master planning analysis; and

(e) Aboriginal cultural heritage assessment; and

(f) architectural analysis; and

(g) environmental analysis—

but not including works done to the land itself, such as remediation or land clearing;

threshold amount means the lesser of—

(a) 1% of the capital improved value of the land immediately before the WGT event; or

(b) $100 000.

S. 40A inserted by No. 23/2022 s. 36.

40A Exemption in relation to land owned by university

(1) Windfall gains tax is not imposed on land that is rezoned by a WGT event if—

(a) the land is owned by a university; and

(b) the university is a charity; and

(c) the Commissioner is satisfied that any land revenue from the land will be used to further the university's charitable purposes.

(2) For the purposes of subsection (1)(c), the university must provide the Commissioner with a declaration as to—

(a) the nature of any land revenue from the land; and

(b) the intended application of the land revenue; and

(3) In this section—

land revenue means any revenue arising from the sale or use of the land, including any of the following—

(a) sale proceeds from the sale of the land;

(b) rental income from leasing the land;

registered higher education provider has the same meaning as in section 5 of the Tertiary Education Quality and Standards Agency Act 2011 of the Commonwealth;

university means a registered higher education provider that is registered under the Tertiary Education Quality and Standards Agency Act 2011 of the Commonwealth in the "Australian University" provider category of the Higher Education Standards Framework.

Division 3—Waivers

41 Waiver for charitable land

S. 41(1) amended by No. 38/2023 s. 23.

(1) The Commissioner must waive windfall gains tax and any interest payable under Part 4 in respect of charitable land if the land, or relevant part of the land, has remained as charitable land continuously for 15 years after the occurrence of the WGT event that gave rise to the liability for the tax.

(2) If part only of land has remained as charitable land continuously for 15 years after the occurrence of the WGT event, the waiver under this section applies only to that part.

(3) The Commissioner may make a reassessment of windfall gains tax under section 9 of the Taxation Administration Act 1997 for the purposes of this section more than 5 years after the initial assessment.

Part 6—General

42 Windfall gains tax is a first charge on land

(1) Unpaid windfall gains tax (including any interest and penalty tax under the Taxation Administration Act 1997 and any accrued interest on deferral under Part 4) is a first charge on the land on which the tax is payable.

(2) The charge has priority over all other encumbrances to which the land is subject.

(3) If a person—

(a) is a bona fide purchaser for value of land; and

(b) obtains a certificate from the Commissioner under section 95AA of the Taxation Administration Act 1997 in respect of the land—

the charge does not secure any amount of windfall gains tax (including any interest and penalty tax) on the land in excess of the amount set out in the certificate.

(4) If the certificate states that a WGT event has occurred that rezones the land but any windfall gains tax on the land is yet to be assessed, subsection (3) does not apply in relation to any windfall gains tax payable on the land in relation to that WGT event.

Note

Notice of a charge under this section may be lodged with the Registrar under section 106B of the Transfer of Land Act 1958.

S. 43 amended by No. 38/2023 s. 24.

43 Secretary to provide rezoning information to Commissioner

The Secretary to the Department of Transport and Planning—

(a) within 10 days after the Planning Minister receives an adopted planning scheme amendment that will cause a rezoning on its approval, must give the Commissioner a written notice setting out—

(i) the zoning changes to be caused by the amendment; and

(ii) a description of any land that will be affected by those zoning changes; and

(b) within 10 days after the approval of a planning scheme amendment that causes a rezoning, must give the Commissioner a written notice setting out—

(i) the zoning changes caused by amendment; and

(ii) a description of any land that is affected by those zoning changes; and

(iii) any other information about the zoning changes that is required by the Commissioner.

44 Regulations

(1) The Governor in Council may make regulations for or with respect to any matter or thing that is required or permitted to be prescribed or necessary to be prescribed to give effect to this Act.

(2) Regulations made under this Act—

(a) may be of general or limited application;

(b) may differ according to differences in time, place or circumstances.

Pts 7−11 (Headings and ss 45−69) repealed by No. 52/2021 s. 110(1).

Pt 12 (Headings and ss 70−94) amended by Nos 52/2021 s. 110(1), 23/2022 s. 22(3), repealed by No. 52/2021 s. 110(2).

Pt 13 (Heading and ss 95−101) repealed by No. 52/2021 s. 110(2).

Pts 14, 15 (Headings and ss 102−107) repealed by No. 52/2021 s. 110(1).

Pt 16 (Heading and ss 108−110) repealed by No. 52/2021 s. 110(2).

═════════════

Endnotes

1 General information

See www.legislation.vic.gov.au for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.

Minister's second reading speech—

Legislative Assembly: 13 October 2021

Legislative Council: 28 October 2021

The long title for the Bill for this Act was "A Bill for an Act to impose a windfall gains tax on the increase in the value of land resulting from a rezoning and amend the Duties Act 2000, the Essential Services Commission Act 2001, the Gambling Regulation Act 2003, the Land Tax Act 2005, the State Taxation and Mental Health Acts Amendment Act 2021, the Taxation Administration Act 1997, the Valuation of Land Act 1960, the Water Act 1989 and the Water Industry Act 1994 and for other purposes."

Constitution Act 1975:

Section 85(5) statement:

Legislative Assembly: 13 October 2021

Legislative Council: 28 October 2021

Absolute majorities:

Legislative Assembly: 28 October 2021

Legislative Council: 18 November 2021

The Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 was assented to on 30 November 2021 and comes into operation as follows:

Sections 1, 2, 45–48, 55–70, 75–80, 102–107 on 1 December 2021: section 2(1); sections 49–54, 71–74 on 15 April 2022: section 2(2); sections 3–44, 81–101, 108–110 on 1 July 2023: section 2(3).

The title of this Act was changed from the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 to the Windfall Gains Tax Act 2021 by section 108 of the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021, No. 52/2021.

INTERPRETATION OF LEGISLATION ACT 1984 (ILA)

Style changes

Section 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.

References to ILA s. 39B

Sidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided section or clause of a Schedule is amended by the insertion of one or more subsections or subclauses, the original section or clause becomes subsection or subclause (1) and is amended by the insertion of the expression "(1)" at the beginning of the original section or clause.

Interpretation

As from 1 January 2001, amendments to section 36 of the ILA have the following effects:

• Headings

All headings included in an Act which is passed on or after 1 January 2001 form part of that Act. Any heading inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. This includes headings to Parts, Divisions or Subdivisions in a Schedule; sections; clauses; items; tables; columns; examples; diagrams; notes or forms. See section 36(1A)(2A).

• Examples, diagrams or notes

All examples, diagrams or notes included in an Act which is passed on or after 1 January 2001 form part of that Act. Any examples, diagrams or notes inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, form part of that Act. See section 36(3A).

• Punctuation

All punctuation included in an Act which is passed on or after 1 January 2001 forms part of that Act. Any punctuation inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. See section 36(3B).

• Provision numbers

All provision numbers included in an Act form part of that Act, whether inserted in the Act before, on or after 1 January 2001. Provision numbers include section numbers, subsection numbers, paragraphs and subparagraphs. See section 36(3C).

• Location of "legislative items"

A "legislative item" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of an Act is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.

• Other material

Any explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of an Act.
See section 36(3)(3D)(3E).

2 Table of Amendments

This publication incorporates amendments made to the Windfall Gains Tax Act 2021 by Acts and subordinate instruments.

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Windfall Gains Tax Act 2021, No. 52/2021

Assent Date:	30.11.21
Commencement Date:	Ss 108–110 on 1.7.23: s. 2(3)
Note:	S. 110(1) repealed Pts 7–11, Divs 1–5 of Pt 12, Pts 14, 15 (ss 45–80, 102–107) on 1.7.23; s. 110(2) repealed Pts 12, 13 and 16 (ss 81–101, 108–110) on 1.7.24
Current State:	This information relates only to the provision/s amending the Windfall Gains Tax Act 2021

State Taxation and Treasury Legislation Amendment Act 2022, No. 23/2022

Assent Date:	15.6.22
Commencement Date:	S. 36 on 16.6.22: s. 2(1); s. 22(3) on 1.7.22: s. 2(2)
Current State:	This information relates only to the provision/s amending the Windfall Gains Tax Act 2021

State Taxation Acts and Other Acts Amendment Act 2023, No. 38/2023

Assent Date:	12.12.23
Commencement Date:	Ss 19, 21–24 on 13.12.23: s. 2(1); s. 20 on 1.1.24: s. 2(2)
Current State:	This information relates only to the provision/s amending the Windfall Gains Tax Act 2021

State Taxation Further Amendment Act 2024, No. 50/2024

Assent Date:	3.12.24
Commencement Date:	S. 99 on 4.12.24: s. 2(1)
Current State:	This information relates only to the provision/s amending the Windfall Gains Tax Act 2021

Fire Services Property Amendment (Emergency Services and Volunteers Fund) Act 2025, No. 16/2025

Assent Date:	27.5.25
Commencement Date:	S. 22(6) on 1.7.25: s. 2
Current State:	This information relates only to the provision/s amending the Windfall Gains Tax Act 2021

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

3 Explanatory details

No entries at date of publication.

1 Windfall Gains Tax Act 2021

Version No. 010

Windfall Gains Tax Act 2021

No. 52 of 2021

Version incorporating amendments as at
1 July 2025

TABLE OF PROVISIONS

Section Page

Part 1—Preliminary 1

1 Purpose 1

2 Commencement 1

3 Definitions 1

4 Taxation Administration Act 1997 5

5 Act binds the Crown 5

Part 2—Imposition of windfall gains tax 6

6 Imposition of windfall gains tax 6

7 When does liability for windfall gains tax arise? 6

8 Who is liable for windfall gains tax? 6

Part 3—Assessment of windfall gains tax 7

Division 1—Rate of windfall gains tax 7

9 What is the rate of windfall gains tax? 7

Division 2—Determining taxable value uplift 7

10 What is the taxable value uplift of land? 7

11 What is the value uplift of land? 7

12 CIV1 and CIV2—rateable land and non-rateable leviable land 8

13 CIV1 and CIV2—non-rateable non-leviable land 8

14 Valuation of separate occupancies 9

15 Value uplift of land not separately valued 9

Division 3—How is windfall gains tax assessed? 10

16 Windfall gains tax assessed on aggregated basis and apportioned 10

17 Assessment of joint owners of land 11

18 Assessment of trustees 11

Division 4—Grouping provisions 11

19 Assessment of windfall gains tax in relation to groups 11

20 Constitution of groups 11

21 Groups of corporations, trusts and both 12

22 What are related corporations? 12

23 What is a controlling interest in a corporation? 13

24 Further provisions for determining whether corporations are related corporations 14

25 What are related trusts? 15

Division 5—General 16

26 Notice of errors in notice of assessment 16

Part 4—Deferral of windfall gains tax 18

Division 1—Preliminary 18

27 Definitions 18

28 Meaning of 19

The Act’s core concept is value uplift measured by capital improved values and taxed when that uplift is caused by a rezoning event. The value uplift is CIV2 less CIV1 (s 11). CIV1 is the capital improved value immediately before the WGT event and CIV2 is the capital improved value that takes the WGT event into account. The Act distinguishes valuation sources by land type: for rateable land and non‑rateable leviable land CIVs are taken from valuations under the Valuation of Land Act 1960 (s 12); for non‑rateable non‑leviable land CIVs are valuations obtained for the Commissioner by the Valuer‑General or a nominated valuer (s 13(1)). The valuation regime therefore imports and relies on the Valuation of Land Act 1960 for valuation standards and processes (s 12-15).

Taxable value uplift is the value uplift less regulatory deductions (s 10). The Act delegates to regulations the power to prescribe deductions from value uplift (s 10; s 44). The statutory rate schedule establishes a nil threshold for the first $100,000 of taxable uplift, a higher effective marginal rate between $100,000 and $500,000, and a 50% rate at and above $500,000 (s 9). That schedule produces nonlinear marginal incidence: a taxpayer with uplift just above $100,000 faces an effective marginal charge of 62.5% on the increment between $100,000 and $500,000, and taxpayers with large uplifts pay 50% on the whole uplift once it reaches $500,000.

Aggregation and apportionment are significant operational concepts. The Commissioner assesses taxpayers on an aggregated basis for all land owned by the taxpayer that is rezoned by a WGT event (s 16(1)). Negative taxable uplifts are ignored when aggregating (s 16(3)). The aggregated tax is apportioned to each title by reference to the proportion each title’s taxable uplift bears to the aggregated uplift (s 16(2)). Joint owners are treated as a single unit for assessment purposes; joint owners are jointly assessed as if the land were owned by one person, without taking account of their separate interests (s 17). Trustees are assessed on aggregated uplift for land subject to the trust regardless of other land held by the trustee for other trusts or personal benefit (s 18). Grouping provisions tax related corporations and related trusts on an aggregated group basis; every member of a group is jointly and severally liable for the group assessment (s 19-21).

Relatedness and controlling interest rules determine when separate legal owners are treated as a single economic unit for assessment and liability purposes. Corporations are related corporations in various control and shareholding configurations (s 22). A person has a controlling interest in a corporation if control can be exercised over board composition, more than 50% of votes, or more than 50% of issued share capital (s 23). Further rules clarify how nominee or trustee shareholdings are treated and when board composition is treated as controlled (s 24). For trusts, related trusts are those where the same person or persons together have a controlling interest in each trust, with controlling interest defined by control of trustee appointment or entitlement to more than 50% of income or capital; the Commissioner may determine attributable entitlement for discretionary trusts (s 25).

Deferral is a principal compliance mechanism that shifts payment timing rather than removes liability. Taxpayers may elect to defer all or part of the liability (s 31). Deferred tax attracts daily interest at a statutory formula linked to the 10‑year Treasury Corporation bond yield, calculated using the average yields published for the month of May in the preceding financial year (s 35). Deferred tax becomes due on common property‑transfer triggers or after 30 years (s 32). The Act also treats certain dutiable transactions and charitable transactions as special cases permitting a transferee to elect to assume deferred liabilities on completion (s 28-30).

Exemptions and waivers narrow the taxable base. The residential land exemption uses a fact and size test focused on primary residential use and area not exceeding two hectares where the land is the only residential land the taxpayer owns that is rezoned (s 36-37). Rezoning error and correcting amendment exemptions are available where the Commissioner is satisfied that the rezoning corrects an obvious or technical error in the Victoria Planning Provisions or a planning scheme; the Commissioner may consult the Secretary in making that determination (s 38(1), (1A)). Pre‑existing contracts and options, rezonings underway before 15 May 2021 subject to thresholds and evidentiary requirements, university land used for charitable purposes, and charitable land that remains charitable for 15 years post‑WGT event are separately handled (s 39-41).

Security and enforcement mechanics impose a statutory first charge on land for unpaid windfall gains tax and associated interest and penalties; the Act provides that the charge has priority over other encumbrances but a bona fide purchaser may obtain a certificate from the Commissioner that limits the secured amount to that stated in the certificate (s 42(1)-(4)). The Secretary must give the Commissioner notice of adopted planning scheme amendments and approved amendments within set timeframes (s 43), institutionalising information flows from planning administration to tax administration.

The primary economic incidence is placed on the legal owner of the land at the time the rezoning takes effect (s 8). The Act expressly assigns liability to that owner; ownership is defined by registered proprietorship under the Transfer of Land Act 1958 or the holder of an estate in fee simple where the land is not under the Torrens system (s 3 definition of owner). For land held in trust the trustee is assessed on aggregated uplift for land subject to the trust (s 18). Joint owners are jointly assessed as though the land were owned by a single person (s 17). The grouping rules reach beyond single legal owners: related corporations and related trusts, and combinations where the same person has controlling interests across entities, are subject to group assessment and joint and several liability (s 19-25). Consequently, legal ownership structures, corporate groups and trust networks will be directly affected.

Transferees in certain transactions are implicated by the deferral rules. A transferee in a no‑consideration dutiable transaction or in a specified charitable land transaction may, by election before completion, assume deferred liabilities, extinguishing the transferor’s liability on acceptance by the Commissioner (s 29(2)-(4); s 30(2)-(4)). Where a taxpayer elects to defer payment under s 31, the person who made that election remains liable until triggers under s 32 occur unless a permitted transferee election is accepted. Members of a group are jointly and severally liable for group assessed liabilities (s 19(2)); therefore entities linked by shareholding, control or trust relationships may be called on collectively to satisfy an assessment.

Landholders and purchasers are affected by security and title implications. Unpaid windfall gains tax is a first charge on land with priority over other encumbrances (s 42(1)-(2)). A bona fide purchaser for value may obtain a certificate from the Commissioner under s 95AA of the Taxation Administration Act 1997 stating the amount secured (s 42(3)). If a certificate indicates a WGT event has occurred but assessment has not yet been made, the certificate does not limit the Commissioner’s ability to claim windfall gains tax that is later assessed in relation to that WGT event (s 42(4)). Buyers and lenders therefore face due diligence considerations concerning declared or undeclared WGT events and the extent of the Commissioner’s charge.

Valuation and administrative actors are engaged: the Commissioner, the Valuer‑General and a valuer nominated by the Valuer‑General for non‑rateable non‑leviable land (s 13(1)-(2)). The Commissioner can request valuations for non‑rateable non‑leviable land (s 13(2)) and may use occupancy valuations under the Valuation of Land Act 1960 when those exist (s 14). The Secretary to the Department of Transport and Planning must provide details of adopted amendments and approvals, including zoning changes and descriptions of affected land, to the Commissioner within 10 days of receipt or approval (s 43). The Commissioner has functions under several provisions to reassess assessments beyond ordinary time limits in limited circumstances (s 38(4); s 41(3)).

Several classes of landholders are explicitly carved out or treated differently. Charities and charitable land are treated uniquely: charitable land is defined and may attract waivers where the land remains charitable for 15 years after the WGT event (s 3 definitions; s 41). Universities that are charities may be exempt if the Commissioner is satisfied that land revenue will further charitable purposes and a declaration is provided (s 40A). Residential land used primarily for residential purposes and where quantified size limits are met may be exempt or have uplift adjusted (s 36-37). Certain classes of rezonings are excluded from being WGT events by definition (excluded rezoning in s 3, and the Treasurer may declare excluded zones by Gazette notice under s 3(2)).

Professional advisers will be affected through increased valuation, recordkeeping and election processes. The Commissioner’s acceptance of forms and requirements for elections (s 29(2); s 30(2); s 31(2)(a)) and notices of errors in assessments with a 60‑day window to notify the Commissioner (s 26) create procedural burdens that will fall on advisers and clients. The Act’s reliance on valuations under the Valuation of Land Act 1960 and on valuations provided by or through the Valuer‑General for some classes of land will involve professional valuers (s 12-15).

Finally, planning authorities and the Secretary to the Department of Transport and Planning have an administrative obligation to pass rezoning information to the Commissioner on a fixed timetable (s 43), creating a formal information pathway between planning and tax agencies. That obligation situates planning administrators as indirect actors in the tax’s operationalisation.

Who must do what is set out in the Act by role. Owners at the time of the WGT event are liable for the tax (s 8). Trustees are assessed on aggregated uplift for the trust (s 18). Joint owners are jointly assessed and must treat the tax as if their land were owned by a single person (s 17). Members of a constituted group are assessed on aggregated uplift across the group and are jointly and severally liable for the group assessment (s 19(1)-(2)). The Commissioner issues notices of assessment under the Taxation Administration Act 1997 (s 4; note to s 7 refers to s 14 of the TAA 1997 for notices). A person served with a notice of assessment must notify the Commissioner within 60 days of any error or omission in the notice regarding other land that was rezoned by the WGT event and not specified in the notice (s 26(1)-(2)).

A taxpayer has procedural rights to elect deferral of up to 100% of the tax, by making an election in a form approved by the Commissioner before the day on which the tax is payable, subject to the Commissioner’s power to accept late elections (s 31(1)-(4)). Deferred taxors must pay deferred amounts and accrued interest within 30 days of certain trigger events including non‑excluded dutiable transactions, relevant acquisitions, or 30 years after the WGT event (s 32(1)). Relevant transferees who elect under the rules for no‑consideration dutiable transactions or relevant charitable land transactions become liable on completion and the transferor’s liability is extinguished on acceptance by the Commissioner (s 29(2)-(4); s 30(2)-(4)).

The Commissioner has valuation and administrative powers. For non‑rateable non‑leviable land the Commissioner may request valuations from the Valuer‑General or a nominated valuer (s 13(2)). The Commissioner may use occupancy valuations under the Valuation of Land Act 1960 for assessment and include occupancy descriptions in notices (s 14). In determining whether a rezoning is a correcting WGT event the Commissioner may consult the Secretary to the Department of Transport and Planning (s 38(1A)). The Commissioner may reassess beyond normal time limits for purposes of correcting WGT events or charitable waivers (s 38(4); s 41(3)), relying on s 9 of the Taxation Administration Act 1997 as the reassessment power referenced in those provisions.

The Secretary to the Department of Transport and Planning has the duty to inform the Commissioner of adopted planning scheme amendments causing rezoning and to supply, within 10 days, specified information set out in s 43(a), and similarly to provide notice within 10 days after approval including descriptions and any other information required by the Commissioner (s 43(b)). This creates a statutory duty for planning administration to feed data to taxation administration in fixed timeframes.

Rights to statutory exemptions and waivers are set out and contingent on fact and evidence. The residential land exemption applies if the Commissioner is satisfied that the land has a building designed and constructed primarily for residential purposes and capable of lawful use as a residence, with additional tests for land under construction and a 2 hectare cap where it is the only residential land rezoned by the taxpayer; if the taxpayer’s residential land exceeds 2 hectares the taxable uplift is adjusted by formula (s 36-37). Exemptions also arise for correcting WGT events that correct obvious or technical errors in the Victoria Planning Provisions or a planning scheme; in such cases the Commissioner must reassess and refund any tax and interest already paid if the correcting WGT event produces a negative uplift and the owner is the same as for the original WGT event (s 38(1), (2)). The Commissioner must waive tax and Part 4 interest for charitable land which remains charitable for 15 continuous years after the WGT event (s 41(1)-(2)).

Security and priority duties and rights are prescribed. Unpaid windfall gains tax and associated interest and penalties form a first charge on the land (s 42(1)). The charge has priority over all other encumbrances (s 42(2)). A bona fide purchaser for value who obtains a certificate from the Commissioner under s 95AA of the Taxation Administration Act 1997 secures the purchaser against amounts in excess of the amount stated in the certificate (s 42(3)). However, where a certificate states that a WGT event has occurred but tax is yet to be assessed, the limitation does not apply in respect of tax subsequently assessed for that WGT event (s 42(4)).

Regulatory and delegated powers are present. The Governor in Council may make regulations for matters required or permitted to be prescribed to give effect to the Act and regulations may differ by time, place or circumstance (s 44(1)-(2)). The regulations are the statutory vehicle for deductions from uplift (s 10) and for other detailed matters required by administration.

The Act integrates with the Taxation Administration Act 1997 for notices, assessments, collection, penalties and enforcement (s 4). The Commissioners’ standard administrative powers under the Taxation Administration Act therefore apply to windfall gains tax matters; the Act’s notes explicitly reference s 14 of the Taxation Administration Act 1997 for notices of assessment and payment timing (note to s 7). The Act specifies that failure to pay deferred tax or rolled over tax, and accrued interest when due, is a tax default for the purposes of the Taxation Administration Act 1997 (s 34). A tax default under that Act triggers the collection and penalty mechanisms that are available under the Taxation Administration Act 1997; the Windfall Gains Tax Act displaces no enforcement powers but supplies the statutory obligation.

Unpaid windfall gains tax, accrued interest on deferral, and penalty tax under the Taxation Administration Act 1997 form a first charge on the land (s 42(1)). The charge has priority over other encumbrances (s 42(2)). The Act expressly contemplates lodging notice of the charge with the Registrar under section 106B of the Transfer of Land Act 1958 (note under s 42), producing a title encumbrance visible to third parties. A bona fide purchaser for value can obtain a certificate from the Commissioner under s 95AA of the Taxation Administration Act 1997 which limits the secured amount to that stated in the certificate (s 42(3)). The Act preserves the Commissioner’s ability to claim tax later assessed: where a certificate states a WGT event has occurred but tax has not yet been assessed, the certificate does not prevent the Commissioner later securing amounts assessed in relation to that WGT event (s 42(4)).

Specific triggers turn deferred obligations into payable debt. Deferred tax becomes payable within 30 days of a dutiable transaction (other than an excluded dutiable transaction) relating to the WGT land, a relevant acquisition (other than an excluded relevant acquisition) in respect of a landholder who is the owner, or 30 years after the WGT event, whichever occurs first (s 32(1)). The same triggers apply to rolled over windfall gains tax for relevant transferees (s 32(2)). The Act specifies what constitutes excluded dutiable transactions and excluded relevant acquisitions (s 28; definitions in Part 4), limiting certain events that would trigger payment.

Interest on deferred amounts accrues daily at a rate determined by the 10‑year bond rate indicated in the Act (s 35(1)-(3)). This interest is recoverable alongside the deferred principal. A tax default occurs if deferred amounts and accrued interest are not paid on time (s 34). The Act thereby confirms that interest and failure to pay carry legal and financial consequences under the Taxation Administration Act 1997.

The Act confers the Commissioner with valuation powers necessary for assessment. For non‑rateable non‑leviable land the Commissioner may request a valuation from the Valuer‑General or a nominated valuer and use those valuations to determine CIV1 and CIV2 (s 13). The Commissioner may also use valuations that allocate value to separate occupancies and include occupancy descriptions in notices of assessment (s 14). These powers are operationally significant for enforcement, because the Commissioner’s valuation determinations underpin the tax base.

Administrative duties include the obligation for the Secretary to the Department of Transport and Planning to deliver zoning change information to the Commissioner within 10 days after adopted planning scheme amendments that will cause rezoning are received by the Planning Minister, and within 10 days after approval of a planning scheme amendment that causes rezoning (s 43(a)-(b)). That statutory information flow aids enforcement by supplying the Commissioner with authoritative triggers for WGT events.

The Act does not create new criminal offences distinct from taxation enforcement; it expressly provides that nothing in the Act makes the Crown liable to criminal prosecution under the Act (s 5(2)). The enforcement regime is therefore civil tax collection, secured charges on land and the processes and penalties under the Taxation Administration Act 1997 for tax defaults.

The Act is expressly to be read together with the Taxation Administration Act 1997, which governs administration and enforcement of tax laws (s 4). References within the Act rely on that machinery: notices of assessment, payment times, reassessment powers and tax default consequences are all managed under the Taxation Administration Act 1997 (note to s 7; s 34 referring to tax default for purposes of the TAA). The Act’s security and purchaser certificate provisions cross‑refer to the Transfer of Land Act 1958 for registration of a charge and to s 95AA of the Taxation Administration Act 1997 for certificates to bona fide purchasers (s 42; note under s 42).

Valuation mechanics import the Valuation of Land Act 1960 for measuring CIV1 and CIV2 for rateable land and non‑rateable leviable land (s 12). The Commissioner may use valuations under the Valuation of Land Act that determine value of separate occupancies and is permitted to treat those occupancies as separate valuation units for assessment (s 14). For non‑rateable non‑leviable land the Commissioner may request valuations from the Valuer‑General or a nominated valuer and those valuations are to be made “for and on behalf of” the Commissioner (s 13(1)). The Act therefore depends on the Valuation of Land Act framework for value measurement and valuation practice.

The Act ties into duties and dutiable transaction concepts under the Duties Act 2000 when establishing deferral triggers and defining excluded transactions (Part 4 definitions; s 27). Terms such as dutiable transaction, relevant acquisition and landholder are taken from the Duties Act to determine when deferred tax becomes due and which transactions are excluded from triggering payment (s 27; s 28; s 32). This design integrates land transfer taxation and stamp‑duty style events with the windfall gains tax triggers.

Planning law interaction is fundamental. A WGT event is defined by reference to an amendment of a planning scheme that causes land to be in a different zone immediately before the amendment (s 3). The timing of a WGT event is governed by when the rezoning “takes effect” under the Planning and Environment Act 1987 (s 7(2)). The Secretary to the Department of Transport and Planning is required to provide the Commissioner with information on adopted amendments and approvals that cause rezoning within 10 days (s 43). The Act also provides an exclusions list for particular rezoning types, and the Treasurer may declare zones to be excluded zones by Gazette notice (s 3(1) definition of excluded rezoning; s 3(2)).

The Act interacts with the Transfer of Land Act 1958 by defining owner and noting the method to lodge notices of charge with the Registrar under the Transfer of Land Act (s 3 definition of owner; note under s 42). The Act also points to the Sale of Land Act 1962 in a note, by warning that an owner must not require a purchaser under an option or contract of sale to pay an amount towards an assessed windfall gains tax liability (note to s 8 referencing s 10H of the Sale of Land Act 1962). That note signals limits on contractual shifting of tax liabilities to purchasers by certain statutory provisions outside the Windfall Gains Tax Act itself.

Other specific statutory references appear in exemptions and definitions. The residential land definition adopts terms from Commonwealth and Victorian Acts, for example commercial residential premises as defined in the A New Tax System (Goods and Services Tax) Act 1999 (Commonwealth) and residential care facility concepts drawn from the Aged Care Act 1997 (Commonwealth) for definitions used in s 36. The Act also references the Planning and Environment Act 1987 for concepts such as contribution areas and the Victoria Planning Provisions when identifying excluded rezoning types (s 3).

Regulatory interaction is possible through the regulations the Governor in Council may make under s 44. Regulations may prescribe deductions from value uplift (s 10) and may differ according to time, place and circumstances (s 44(2), (1)(b)). Those regulations will be the detailed instrument that interfaces with administrative practice, valuation rules, and compliance obligations.

Finally, the Act’s endnotes and explanatory items record amendment Acts that altered definitions and timetables. Those amendments, recorded in the schedule, interact with the Act’s operation by changing definitions (for example excluded rezoning was amended by the State Taxation Acts and Other Acts Amendment Act 2023; the non‑rateable leviable land definition was amended in 2025) and commencement dates for particular provisions (Endnotes, Table of Amendments).

The Act includes an explicit schedule of amendments in the Endnotes that identifies subsequent amending Acts and the provisions they altered. The primary instrument was enacted as the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021, assented to 30 November 2021, with staged commencement provisions set out in s 2. The Endnotes record several amending Acts and dates relevant to this consolidated version.

State Taxation and Treasury Legislation Amendment Act 2022 (No. 23/2022), assent 15 June 2022. Commencement note records s 36 on 16 June 2022 and s 22(3) on 1 July 2022. The Endnotes state this Act amended provisions in the Windfall Gains Tax Act 2021 (Table of Amendments).
State Taxation Acts and Other Acts Amendment Act 2023 (No. 38/2023), assent 12 December 2023. The Endnotes record commencement for various sections as 13 December 2023 and 1 January 2024 for particular items. The consolidated text shows amendments effected by No. 38/2023 in various definitions (for example, changes to definitions of charitable land and excluded rezoning in s 3 as noted at the head of the text and specific s references such as s 38(1) amended by No. 38/2023 s 21(1)). The Act text also shows insertions such as s 38(1A) and s 38(3A) added by that amending Act.
State Taxation Further Amendment Act 2024 (No. 50/2024), assent 3 December 2024. The Endnotes record commencement of s 99 on 4 December 2024 and indicate it amended the Windfall Gains Tax Act 2021.
Fire Services Property Amendment (Emergency Services and Volunteers Fund) Act 2025 (No. 16/2025), assent 27 May 2025. The Endnotes record commencement of s 22(6) on 1 July 2025 and show that this Act amended the definition of non‑rateable leviable land in s 3(1).

The consolidated text also shows local amendments to specific provisions and insertions marked inline (for example, s 3(1) definitions annotated with the amending Act and section). The Act’s long title and the second reading parliamentary dates are recorded in the Endnotes, indicating the policy origins of the instrument and the parliamentary timetable for passage. The Endnotes also include interpretative notes related to the Interpretation of Legislation Act 1984, but these are style and interpretation matters rather than substantive changes to the tax.

Several structural changes occurred via repeal language in the main text. Parts 7-11, multiple divisions of Part 12, Parts 13, 14, 15 and 16 have been repealed at the dates recorded in the Endnotes (see notes under s 44 and the following repeals reflected in the consolidated Part headings). The table in the Endnotes documents those repeals as part of the Act’s evolution and shows which provisions were removed by s 110 of the original 2021 Act.

The Act itself flags certain consequential and cross‑referenced amendments to other statutes as part of the Bill that produced the Act; the long title recorded in the Endnotes indicates the Bill’s wider amendment intent across the Duties Act 2000, Land Tax Act 2005, Valuation of Land Act 1960 and other legislation. The Endnotes do not supply verbatim the consequential amendment text to those statutes but record the Bill’s original scope.

Where the Act permits regulatory detail by Governor in Council, the regulations are a vehicle for further modification consistent with the Act’s policy and definitions (s 44). The Act therefore contains a two‑tier posture: primary law in the Act and delegated detail via regulations, and the Endnotes show that Parliament has already used amending Acts to modify definitions, commencement dates and particular clause content since enactment.

All amendment references cited here are taken from the Endnotes and the inline amendment annotations in the consolidated Act text. The Endnotes are the Act’s record of amendment history and list the assents and commencement dates for each amending Act affecting the Windfall Gains Tax Act 2021.

The consolidated Act text and its Endnotes do not record any judicial decisions or litigation history related to the Windfall Gains Tax Act 2021. The material supplied contains no court names, reported decisions, or references to litigation. The Act therefore carries no entries under a litigation history heading in the source materials.

While the Act itself does not record cases, it expressly places administration and enforcement in the framework of the Taxation Administration Act 1997 (s 4). That cross‑reference means the procedural channels for objections, reviews, reassessments and appeals that exist under the Taxation Administration Act 1997 will be the governing statutory processes for challenges to windfall gains tax assessments. The Act references the Commissioner’s ability to make reassessments under s 9 of the Taxation Administration Act 1997 in specific contexts (s 38(4); s 41(3)), signalling that disputes over correcting WGT events and charitable waivers may involve recourse to the reassessment and objection mechanisms under the TAA.

The Act confers valuation powers and duties on the Valuer‑General for certain classes of land (s 13). Disputes over valuation for CIV1 and CIV2, particularly where the Commissioner requests valuations for non‑rateable non‑leviable land and relies on the Valuer‑General’s opinion, would therefore be expected to be litigated or administratively contested under the valuation and tax appeal processes provided elsewhere, but those processes are not set out in the Act itself. The available appeal or review processes for valuation and tax determinations, including objection timelines and judicial review, are those established in the Taxation Administration Act 1997 and the Valuation of Land Act 1960, both of which are referenced in this Act.

In short, the source contains no reported decisions or litigation items. Any litigation that arises will proceed through the statutory machinery referenced in the Act, principally the Taxation Administration Act 1997 and the Valuation of Land Act 1960, but the Act’s text itself contains no judicial history or case law.

Timing of liability is instantaneous with effect of rezoning. Liability arises when the rezoning takes effect under the Planning and Environment Act 1987 (s 7(1)-(2)). This is a statutory trigger tied to planning law timing, not to notification to owner or completion of sale. Owners who cease to be owners between a rezoning being decided and the rezoning taking legal effect may nevertheless find themselves liable or relieved depending on the precise timing of effect. The Act’s definition of owner is the registered proprietor under the Transfer of Land Act 1958 or holder of fee simple where Torrens is not applicable (s 3).
Aggregation across an owner’s land can substantially increase assessed liability. The Commissioner assesses on the aggregated taxable value uplift of all land owned by the taxpayer that is rezoned by the WGT event and ignores negative uplifts when aggregating (s 16(1), (3)). Small positive uplifts on multiple parcels owned by the same taxpayer may aggregate to a taxable uplift above $100,000 and attract a higher effective marginal rate. Conversely, negative uplifts on other parcels cannot be netted off in aggregation (s 16(3)).
Grouping rules can pull seemingly separate entities into a single assessment. Corporations are grouped where control or shareholding thresholds and board control tests are met (s 22-24). Trusts are grouped where the same person has controlling interests in multiple trusts; the Commissioner can attribute entitlement for discretionary trusts to determine whether a 50% entitlement exists (s 25(3)). Once a group is constituted, members are jointly and severally liable for the group assessment (s 19(1)-(2)). Complex ownership structures and nominee holdings may therefore be captured by the Act’s relatedness tests.
Valuation reliance and discretion. For rateable land CIVs are taken from general and supplementary valuations under the Valuation of Land Act 1960 (s 12). For non‑rateable non‑leviable land the Commissioner requests valuations from the Valuer‑General or a nominated valuer (s 13(1)-(2)). That reliance introduces potential timing and cost risks where valuations must be arranged, and it puts the Commissioner’s valuation choices at the heart of the liability determination.
Commissioner discretion and administrative steps. The Commissioner may accept late elections to defer (s 31(3)) and can consult the Secretary when determining correcting WGT events (s 38(1A)). The Commissioner may reassess beyond typical time limits in specific circumstances (s 38(4); s 41(3)). Those powers create administrative uncertainty for taxpayers relying on fixed statutory limitation periods elsewhere.
Deferred tax triggers and 30‑year cap. Deferral is a common instrument, but deferred taxes become payable on events tied to duties and landholder acquisitions or after an absolute 30‑year period post‑WGT event (s 32). Owners electing deferral must track dutiable transactions (s 27) and relevant acquisitions under the Duties Act 2000, and manage the 30‑year expiry of deferral. Failure to pay when triggers occur constitutes a tax default under the Taxation Administration Act 1997 (s 34).
Interest on deferral is index linked to a Treasury Corporation rate. Interest on deferred amounts accrues daily at the 10‑year bond rate averaged across yields published in May of the preceding financial year (s 35(1)-(3)). The formula references the monthly published yields of the Treasury Corporation of Victoria. The choice of this benchmark will vary over time and may exceed commercial lending rates in some periods.
Residential exemption is narrowly defined and conditioned. Residential land must have a building designed and constructed primarily for residential purposes and be used primarily for residential purposes to qualify; land used for primary production is assessed differently by context (s 36(1), (4)). The exemption applies only if the land does not exceed two hectares and is the only residential land owned by the taxpayer that is rezoned by the WGT event (s 37(1)). Where the owner holds more than 2 hectares of residential land rezoned by the WGT event, a formula applies to scale down the taxable uplift (s 37(2)). The Commissioner’s satisfaction is required for several elements (s 36(1)-(3)).
Correcting WGT events have retrospective effects. If a correcting WGT event creates a negative value uplift on land for which windfall gains tax has already been assessed under an original WGT event, the Commissioner must reassess and refund tax and interest provided the owner is the same (s 38(2)). The Commissioner may reassess beyond five years in these circumstances (s 38(4)). The Commissioner will seek Valuer‑General advice to apportion value attributable to correcting events when a rezoning consists partly of a correcting event (s 38(3A)).
Transactional elections must be timely and in approved form. For no‑consideration and charitable transferees to assume liabilities the transferee must make the election in a form approved by the Commissioner on or before the date of completion (s 29(2)-(3); s 30(2)-(3)). An election accepted by the Commissioner extinguishes the transferor’s liability on completion (s 29(4); s 30(4)). The forms and the Commissioner’s acceptance are therefore operationally decisive.
Security on title remains broad. Unpaid tax is a first charge with priority over other encumbrances (s 42(1)-(2)). A purchaser can mitigate exposure by obtaining a certificate under s 95AA of the Taxation Administration Act 1997, but that certificate does not limit later assessed tax if it states a WGT event has occurred and tax has not yet been assessed (s 42(4)).
Information flows create notification timing risks. The Secretary must notify the Commissioner within 10 days after the Planning Minister receives an adopted planning scheme amendment that will cause a rezoning on approval, and within 10 days after approval of a planning scheme amendment that causes a rezoning (s 43(a)-(b)). Taxpayers should not assume notification will be delayed or automatic; the statutory obligation imposes a tight timeline that may lead to rapid assessment action.
Many definitions and exclusions are technical. The definition of excluded rezoning includes several specific scenarios and allows the Treasurer to declare excluded zones by Gazette notice (s 3(1), (2)). The exemptions connected to rezonings underway before 15 May 2021 require documentary evidence about work, costs and thresholds (s 40). Failure to satisfy the precise statutory tests will disqualify claimed exemptions.

Monitor planning scheme amendments and WGT event timing
- Establish a process to monitor planning scheme amendments and the moment a rezoning takes effect under the Planning and Environment Act 1987, because liability arises when the rezoning takes effect (s 7(1)-(2)). The Secretary to the Department of Transport and Planning is required to notify the Commissioner within 10 days of adopted amendments and approvals (s 43). Owners should not rely solely on official Commissioner notifications to know whether a WGT event has occurred.
Determine owner status at the effective date
- Confirm legal ownership at the effective date of the rezoning. The owner at the WGT event is liable (s 8). For land under the Transfer of Land Act 1958 the registered proprietor is the owner; elsewhere the holder of an estate in fee simple is the owner (s 3 definition of owner). For trusts determine the trustee who will be assessed under s 18.
Establish valuation inputs and secure appropriate valuations
- For rateable land and non‑rateable leviable land obtain CIV1 from the valuation in force immediately before the WGT event and CIV2 from the supplementary valuation under Part IIB of the Valuation of Land Act 1960 (s 12). For non‑rateable non‑leviable land seek valuation arrangements with the Valuer‑General or a valuer nominated by the Valuer‑General, since the Commissioner may request such valuations and they will determine CIV1 and CIV2 for those land classes (s 13(1)-(2)). If the land was not separately valued at the relevant date, apply s 15 area‑based apportionment to derive CIV1.
Calculate value uplift and taxable value uplift
- Compute value uplift (VU) as CIV2 minus CIV1 in accordance with s 11. Deduct any items prescribed by regulation to arrive at taxable value uplift in accordance with s 10. Keep records of valuation sources, Valuer‑General correspondence, and the calculation steps required for assessment and any objections.
Apply aggregation and apportionment rules
- Aggregate taxable uplifts across all rezoned land owned by the taxpayer for that WGT event (s 16(1)). Remember negative taxable uplifts are ignored for aggregation (s 16(3)). Apportion aggregated tax to each title according to that title’s share of taxable uplift (s 16(2)). For joint owners, coordinate a single representation as the Act treats joint owners as a single person for assessment purposes (s 17). For trusts, note the trustee is assessed on the aggregated uplift for land subject to the trust (s 18).
Check relatedness and group membership
- Evaluate whether corporations or trusts are related under s 22-25. If so, understand that a group assessment will be made against all group members with joint and several liability (s 19). Test shareholdings, board control rights, trustee appointment control and entitlement to income or capital under the definitions in s 22-25. When nominee or trustee shareholdings exist, apply the statutory clarifications in s 24 on when holdings are taken to be held or power exercisable by another.
Assess entitlement to exemptions or waivers
- Check residential land tests (s 36-37), ensuring that buildings are designed and constructed primarily for residential purposes and that the Commissioner would be capable of being satisfied under the criteria for land under construction (s 36(1)-(3)). If multiple residential titles exceed two hectares owned by the taxpayer, apply the adjustment formula in s 37(2).
- For correcting WGT events assemble evidence demonstrating the rezoning corrects an obvious or technical error in the Victoria Planning Provisions or a planning scheme and be prepared for consultation between the Commissioner and the Secretary (s 38(1), (1A)). Maintain records of original and correcting amendment valuations and ownership continuity if seeking refunds under s 38(2).
- For pre‑existing contracts and options entered before 15 May 2021 keep dated contracts and evidence that terms were settled at option grant to invoke s 39.
- For rezonings underway before 15 May 2021 collect documentary proof of the Amendment Tracking System registration, Council or Planning Minister request, statutory payments or costs and that the total relevant costs meet the threshold amount as defined (s 40).
Decide whether to elect deferral and follow form requirements
- If electing to defer tax under s 31, do so in a form approved by the Commissioner and, if possible, before the payment date; the Commissioner may however accept late elections (s 31(2)-(3)). Keep written evidence of the election and the date it takes effect (s 31(4)). Be aware that deferred amounts and accrued interest are due within 30 days of a dutiable transaction (other than excluded transactions), a relevant acquisition, or 30 years after the WGT event, whichever is earliest (s 32(1)). Consider whether a transferee election under s 29 or s 30 is available in no‑consideration or charitable land transactions to transfer liability to the buyer.
Understand triggers that will accelerate payment
- Track dutiable transactions and relevant acquisitions under the Duties Act 2000, because these are the primary triggers for payment of deferred amounts (s 27; s 32). Be aware of the categories of excluded dutiable transactions in s 28 which spare certain transactions from becoming triggers. Where a plan of subdivision is registered, apportion deferred tax and interest to lots by area under s 33.
Prepare for interest accrual and final liability timing
- Calculate accrued interest on deferred amounts using the 10‑year bond rate methodology in s 35, noting the use of the average of daily yields for the Treasury Corporation of Victoria bond for May in the preceding financial year (s 35(2)-(3)). Budget for potentially significant interest over time and for the 30‑year maximum deferral expiry in s 32.
File notices and correct assessment errors promptly
- Where a taxpayer receives a notice of assessment, review it for omissions relating to other land owned by the taxpayer, joint owner holdings or group holdings and notify the Commissioner of errors within 60 days of issue (s 26(1)-(2)). If more than one owner exists, one owner may provide the required information on behalf of all owners (s 26(3)).
Manage title encumbrances and purchaser protection
- If you are a purchaser or lender, obtain a certificate under s 95AA of the Taxation Administration Act 1997 where possible to limit exposure to amounts on title (s 42(3)). Be aware that where a certificate states a WGT event has occurred but tax has not been assessed, that certificate does not limit later assessed tax arising from that WGT event (s 42(4)).
Keep documentation for potential reassessments and waivers
- For charitable waivers and correcting WGT events assemble ownership evidence and maintain records for the 15‑year continuous charitable use period required for waiver under s 41(1)-(2). The Commissioner may reassess beyond normal time limits for these matters (s 41(3); s 38(4)). Maintain valuations, receipts, declarations and ministerial or council correspondence accordingly.
Use professional advisers for complex structures
- Engage valuers, tax lawyers and trust and corporate advisers to assess relatedness, grouping exposure, valuation points and the availability of exemptions. The Commissioner’s reliance on Valuer‑General input for non‑rateable non‑leviable land (s 13) and on occupancy valuations (s 14) makes valuers central to compliance.
Anticipate regulatory detail and keep current with amendments
- Monitor regulations made under s 44 for deductions and procedural matters that affect taxable value uplift calculations and administration. Keep current with amendment Acts listed in the Endnotes which have modified definitions and operational provisions since enactment.

Following these steps aligns administrative and evidentiary practice with the Act’s statutory mechanics and minimises the risk of inadvertent tax defaults or missed opportunities for exemptions and deferrals.

Windfall Gains Tax Act 2021

Plain English Summary

Deep Dive

What it does

Current sections

Windfall Gains Tax Act 2021

Source text: opening excerpt

1 Windfall Gains Tax Act 2021

Main concepts

Who it affects

Key duties and rights

Penalties and enforcement

How it interacts with other laws

Amendment history

Litigation history

Gotchas

How to comply