A new land tax will soon apply which may affect people who own land that is rezoned after 1 July 2023. This post explains if you are likely to be affected and how we can help if you are.
The new tax will affect land where the value of the land has increased because it has been rezoned. There are a few exemptions, for example residential land under 2 hectares in size, charitable land and land already subject to Growth Areas Infrastructure Contribution.
The tax will apply to what is referred to as the ‘Taxable Value of Uplift’. This is any increase in the capital improved value of the land after the rezoning of the land where there is a change in the capital improved value of that land greater than $100,000.).
This is a significant tax which has the potential to affect many landholders and developers. The following tax rates apply:
· 62.5% where the taxable value uplift is between $100,000 and $499,999; or
· 50% where the taxable value uplift is above $500,000.
Whilst landowners and developers are not able to object to the payment of the tax itself, there are ways to minimize the taxable value uplift. The payment of the tax can also be deferred in specific circumstances.
We pride ourselves on being professional and thorough. The team at Mal Ryan and Glen can assist in identifying if your land will be subject to the new tax and advise you on how to manage or minimize the impact of the windfall gains tax scheme.
Book an appointment today ...
(03) 5775 2744 (Mansfield)
(03) 5724 3222 (Alexandra)
This article is general in nature. It does not constitute legal advice and should not be taken as such.
