Windfall Gains Tax (Victoria)

Estimate the windfall gains tax payable on the value uplift when Victorian land is rezoned, including the 62.5% marginal band that applies below a $500,000 uplift.

Triggered by rezoning, not by saleWindfall gains tax is charged when land is rezoned, and whoever owns the land at that moment is liable — whether or not they ever develop or sell it. There is a marginal rate of 62.5% on uplift between $100,000 and $500,000, which is steeper than the 50% that applies above it.

The rezoning

$900,000 → $1,500,000 · uplift $600,000

Capital improved value before

As determined by the Valuer-General Victoria immediately before the rezoning takes effect.

Capital improved value after

Where a group owns several parcels rezoned under the same amendment, the uplift is aggregated across the group.

Deferral

Paid on assessment

Model deferral of the liability

Years deferred

The liability can be deferred until the next dutiable transaction or for up to 30 years, whichever comes first.

Assumed annual interest rate (%)

Enter the current rate from the State Revenue Office. This calculator does not carry a live interest rate, and the projection is illustrative only.

How this is worked out

Taxable value uplift

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from the rezoning

Rate applied

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to the taxed amount

Share of the uplift

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payable as tax

How the tax scales with the uplift

Your upliftOther uplift levels

The two scales meet exactly at $500,000 — 62.5% of $400,000 and 50% of $500,000 are both $250,000 — so there is no jump at the changeover. What the phase-in does create is a marginal rate of 62.5% on every dollar of uplift between $100,000 and $500,000, which is higher than the 50% headline rate. Above $500,000 each additional dollar costs 50 cents.

Land in a rezoning pipeline?

Windfall gains tax lands on the owner at rezoning, with no sale and no cash to pay it from. Objecting to the pre-rezoning valuation is one of the few levers available, and the window is short.

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A tax that arrives without a sale

Windfall gains tax applies to Victorian land rezoned on or after 1 July 2023 where the rezoning lifts the value by more than $100,000. The taxable uplift is the difference between the capital improved value immediately before and immediately after the rezoning, as assessed by the Valuer-General — not by the parties, and not by reference to any sale price.

The person who owns the land when the rezoning takes effect is liable. No transaction is required, no proceeds are received, and the liability arises whether or not the owner ever develops or sells. Where a group owns several parcels rezoned under one amendment, the uplifts are added together and grouping rules capture related companies, trusts and joint owners.

Deferral is available until the next dutiable transaction or for up to 30 years, whichever comes first, but interest accrues throughout and can substantially exceed the original liability over a long deferral. The exemptions are significant — residential land up to two hectares, charitable and university land, land in the Growth Areas Infrastructure Contribution area, and rezonings to most rural zones and to a Public Land Zone.

Rates & assumptions used

Windfall gains tax applies to land in Victoria rezoned on or after 1 July 2023 where the rezoning produces a taxable value uplift of more than $100,000.
Where the uplift is more than $100,000 but less than $500,000, tax is 62.5% of the amount above $100,000. Where the uplift is $500,000 or more, tax is 50% of the entire uplift including the first $100,000.
Taxable value uplift is the difference between the capital improved value of the land immediately before and immediately after the rezoning, as determined by the Valuer-General Victoria.
The owner of the land at the time of rezoning is liable. The tax is charged on rezoning, not on sale or development.
Where a person or group owns more than one parcel rezoned under the same amendment, the uplifts are aggregated. Reductions in value are ignored. Joint owners are assessed as a single landowner and grouping rules apply to related companies and trusts.
Deferral is available until the next dutiable transaction or for up to 30 years, whichever occurs first, with interest accruing. The deferral projection uses the rate you enter and compounds annually; it is illustrative only and does not reflect the actual rate or method used by the State Revenue Office.
Not modelled: the residential land exemption (up to two hectares), charitable and university land, rezonings to or from the Urban Growth Zone within the Growth Areas Infrastructure Contribution area, rezonings to most rural zones and to a Public Land Zone, and the transitional exemption for contracts and options entered into before 15 May 2021.

Buying or selling land with a windfall gains tax liability?

Restrictions apply on passing the liability to a purchaser, and a property clearance certificate shows what is outstanding.

Important. Figures shown are estimates generated from the information you enter. They are not an assessment, a quote, or a statement of what you will actually pay.

Windfall gains tax can be a substantial liability that arises without any sale or cash proceeds, and it attaches to the owner at the moment of rezoning. Where land subject to a windfall gains tax liability is bought or sold, restrictions apply on passing the liability to a purchaser, and a property clearance certificate should be obtained. Because the exemptions are significant and the valuation is set by the Valuer-General rather than by the parties, advice should be obtained well before any rezoning activity commences.

This calculator provides a general estimate only, based on the figures you enter and the rates and assumptions listed above as at 28 July 2026. It is not legal, financial, tax or credit advice, does not take account of your objectives, financial situation or needs, and is not a substitute for advice from a qualified adviser. Rates, thresholds, concessions and eligibility rules change, and an official assessment may differ from this estimate. You should confirm your position with the relevant revenue office or the Australian Taxation Office and obtain your own professional advice before acting.