Government says it will release details of its windfall tax 'as soon as possible'

Developers and farmers are both concerned about the tax that they say has the potential to put a handbrake on new housing estates in Warrnambool, and also make some farms unviable.

Real estate agents and developers sounded the alarm last week on the tax saying it could increase the price of a block of land for first home buyers by as much as $30,000 a block.

"The government is looking to legislate the tax as soon as possible to provide certainty to the market, balanced against the need to consult with industry," a government spokesperson said.

The Windfall Gains Tax is forecast to generate tax revenue of approximately $40 million per year.

"We will continue to work with stakeholders on the implementation of these measures, which ensure everyone pays their fair share to support jobs, new housing and Victoria's economic recovery," the spokesperson said.

The windfall gains tax will apply to uplift in the value of land that is due to rezoning decisions.

The tax will be calculated at the time the rezoning decision is gazetted, but payment may be deferred until the next dutiable transaction.

CORONAVIRUS STORIES:

We have removed our paywall from our stories about the coronavirus. This is a rapidly changing situation and we aim to make sure our readers are as informed as possible. If you would like to support our journalists you can subscribe here.

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.