What are some of the criteria that may mean that a rezoning of land is exempt from windfall gains tax?
James Hamblin, Special Counsel at MinterEllison, speaks with LPLC's Phil Nolan and outlines some of the potential exemptions from WGT.
Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021
Windfall Gains Tax Exemptions and Exclusions
Windfall Gains Tax Residential Land Exemption
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.
What are the key dates to pay attention to when it comes to Windfall Gains Tax (WGT)?
James Hamblin, Special Counsel at MinterEllison, speaks with LPLC's Phil Nolan and outlines the WGT dates to be aware of.
In broad terms, the WGT applies to land rezoned from 1 July 2023, but practitioners need to be across the key dates and issues ahead of time, particularly if negotiating long term sale contracts, or options, that will settle after that date that may then be subject to the WGT.
The new Windfall Gains Tax (WGT) will potentially impact real estate transactions that your clients enter into now, if those transactions relate to land in Victoria that is rezoned on or after 1 July 2023.
Clients should be alerted to the potential tax liability and how it may apply to them.
The LPLC Annual Report for 2023–2024 was tabled in the Victorian Parliament on 31 October 2024.
The Victorian Government has introduced the State Tax Amendment Bill 2024 which, amongst other taxation changes, will (if passed) broaden the holiday home exemption to allow shareholders of companies, as well as certain beneficiaries of trusts and relatives of those shareholders and beneficiaries, to satisfy the exemption for a property owned by a company or trust.
The State Taxation Acts and Other Acts Amendment Act 2023 received Royal Assent on 12 December 2023. The new law introduces significant property tax changes in Victoria with effect from 1 January 2024.
