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Victorian Windfall Gains Tax – AS Residential - First WGT case decided in favour of taxpayer

AS Residential Property No. 1 Pty Ltd as trustee for AS Residential Property No, 1 Trust v Commissioner of State Revenue [2026] VCAT 648

Taxpayer successful in overturning a $36.2 million Windfall Gains Tax Assessment by applying the transition rules to show that the Minister had approved the rezoning prior to the 15 May 2021 announcement of the new tax.

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Business Law, State Taxes Phil Broderick Business Law, State Taxes Phil Broderick

Windfall Gains Tax Deductions Shelved

The introduction of windfall gains tax under the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) (Act) has been highly controversial from the outset due to real concerns as to whether the tax truly captures a purported “windfall” by landowners who rezone land in Victoria and its punitive tax rate of 50% of such gains.

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Windfall Gains Tax - legislation released – certain concessions granted

In line with the 2021/22 Victorian Budget announcements and following targeted consultations with various stakeholders, the Victorian Government has recently tabled a Bill to introduce the windfall gains tax - Windfall Gains Tax and State Taxation and Other Acts Further Amendment Bill 2021 (Bill).

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