The new Windfall Gains Tax (WGT) introduced by the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 commences on 1 July 2023.
In broad terms, WGT applies to land rezoned after 1 July 2023.
Practitioners need to be across the issues now, particularly if negotiating long term sale contracts, or options, that will settle after that date that may then be subject to the WGT.
We've put together information and resources to help lawyers understand the legislation, manage the associated risks and provide guidance about how to act now to avoid surprises later.
Key information
The new Windfall Gains Tax (WGT) introduced by the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 commences on 1 July 2023. In broad terms, WGT applies to land rezoned after 1 July 2023. However, practitioners need to be across the issues now, particularly if negotiating long term sale contracts, or options, that will settle after that date that may then be subject to the WGT.
The Windfall Gains Tax (WGT) is a new tax for land owners on the ‘uplift’ in value of land in Victoria that is rezoned from 1 July 2023. Understand and alert your clients now to the potential WGT implications of their real estate transactions.
Windfall Gains Tax (WGT) is a substantial tax on the increased value of most land in Victoria with limited exceptions. Landowners may incur significant WGT liabilities and there are potentially different tax outcomes for clients depending on how transactions are structured. This LIJ article explores the key features of the new tax, some key risk areas for practitioners and tips to avoid clams.
Risk management essentials short videos
Recorded webinars about Windfall Gains Tax
Recorded on 15 November 2022
This webinar, presented by expert state taxes advisor, Craig Whatman from Pitcher Partners, helps practitioners understand the new tax, how it may impact their clients and helps them identify some key risk management actions to take now to avoid any surprises.
Recorded on 24 March 2022
In this recorded webinar tax specialist presenter Matthew Cridland, Partner - K&L Gates, discusses the new Windfall Gains Tax provisions that come into operation on 1 July 2023 and what practitioners will need to consider now. Matthew also provides an update on the circumstances where the expanded 'economic entitlement' provisions may apply, potentially triggering a duty liability.
Useful links
Legislation
Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021
State Revenue Office
Windfall gains tax — frequently asked questions
Windfall gains tax — exemptions and exclusions
Windfall gains tax — residential land exemption
Defer a windfall gains tax liability
Department of Treasury and Finance fact sheet
Windfall gains tax help
Need assistance to find the answer to a question about WGT? LPLC can help.
