The Windfall Tax has been introduced in Victoria for home owners.
It will come into effect mid 2023. In a nutshell- if your land is rezoned and it increases in value you owe the government either 62.5 percent of the increase or 50 percent (dependent on the amount it increases). You may have no mortgage and own your home outright but you will suddenly owe the government money to stay in your own home. For e.g. if they rezone your land and your house was valued at 1,000,000 and because of rezoning it is now valued at 1,500,000. You owe the government $250,000. You can either take 30 years (I don’t know the interest rate- and who is to say this is will be the last tax hike they do) to pay the government or wait until you sell the property before you make payment.
We are starting to see the instruments being implemented which will make it harder for people to hold on to private property.
For a rezoning of land that results in a taxable value uplift:
- more than $100,000 but less than $500,000: the tax will apply at a marginal rate of 62.5% on the uplift above $100,000
- $500,000 or more: a tax rate of 50% will apply to the total uplift
In determining the value uplift of land, all land owned by the person or group and subject to that rezoning is taken into account.
Know LAW .
This is statute garbage .