The Windfall Gains Tax that comes into effect next week is a nail in the coffin of residential development in the Towong Shire, says Member for Benambra Bill Tilley.
“Labor’s latest tax – one of more than 50 since they came to power in 2014 – will slug landowners of rezoned land up to 50 per cent of its new value,” Mr Tilley said.
“The result is owners of farmland rezoned to residential and assessed to have increased in value by $500,000 will have to pay the Victorian government $250,000!”
Mr Tilley said it will affect housing supply and affordability as well as rob small councils like Towong of additional ratepayers.
“At Towong, the balance sheet looks positive but it’s artificially inflated by bushfire and flood recovery money,” Mr Tilley told Parliament yesterday.
“Towong is big – 7000 square kilometres with less than 6000 people. It’s capacity to generate income is limited.
“One option was to cash in on the growth of Albury Wodonga – rezone its rural land to residential to create affordable land, more housing and additional revenue.
“But the Windfall Gains Tax will scuttle all that,” Mr Tilley alleged.
The tax comes into effect on July 1 and is not applied to rezoned land where the uplift in value is less than $100,000.
Mr Tilley said it was another case of Labor’s vision being limited to metro Melbourne.
“There was no consultation and no modelling for this tax that pundits warned would disproportionately affect housing supply and affordability in regional Victoria,” he said.
“It’s a disincentive to development and will add to the cost of those who dream of owning their own home.
“This tax does none of that, and sadly, it’s also going to rob many councils of potential income.”
This article appeared in the Corryong Courier, 22 June 2023.