Windfall Gains Tax Act 2021

Windfall gains tax is not imposed on land that is rezoned by a WGT event if the Commissioner is satisfied that the rezoning constituting the WGT event is caused by an amendment (whether prepared under section 20A of the Planning and Environment Act 1987 or otherwise) to correct an obvious or technical error in the Victoria Planning Provisions or a planning scheme.

The Commissioner may consult the Secretary to the Department of Transport and Planning in determining whether a rezoning is a correcting WGT event.

If a correcting WGT event results in a negative value uplift to land on which windfall gains tax has been assessed in respect of an original WGT event, windfall gains tax is not imposed on the land in respect of the original WGT event and—

the Commissioner must reassess the windfall gains tax liability accordingly; and

the taxpayer is entitled to a refund of any windfall gains tax and interest paid in respect of the original WGT event.

Subsection (2) applies only if the owner of the land at the time of the correcting WGT event is the same as the owner of the land at the time of the original WGT event.

If a rezoning consists partly of a correcting WGT event and partly of a rezoning that is not a correcting WGT event in relation to the same land—

any value uplift attributable to the correcting WGT event is to be ignored in assessing any windfall gains tax on the land; and

for that purpose the Commissioner must seek the advice of the Valuer‑General as to the amount of value uplift attributable to the correcting WGT event.

If payment of windfall gains tax affected by this section is deferred under Part 4, the Commissioner may make a reassessment under section 9 of the Taxation Administration Act 1997 for the purposes of this section more than 5 years after the initial assessment.

In this section—