All windfall gains tax exemptions and exclusions
Land and rezonings that can be exempt or excluded from the tax.
Key information
For windfall gains tax, some types of land may be exempt, excluded or eligible for a waiver.
To apply for an exemption or exclusion, please email windfallgainstax@sro.vic.gov.au.
Residential land
For each planning scheme amendment that rezones land, up to 2 hectares of residential land owned by the same owner or group will be exempt from windfall gains tax. Vacant land is not exempt.
Residential land includes:
- land with a home
- land where a home is being built or renovated
- some primary production land with a home.
Read more about the residential land exemption.
Charitable and university land
Land owned by a charity may qualify for a waiver if it is used for charitable purposes for 15 years after the rezoning.
Land owned by a university may be exempt if we are satisfied the revenue from the land will be used for its charitable objectives.
Read more about charitable and university land.
Land rezoned to or from the urban growth zone
Rezonings to and from the urban growth zone within the growth areas infrastructure contribution area are excluded from windfall gains tax.
Land rezoned to public land zones
Land rezoned to a public land zone is excluded from windfall gains tax.
Land rezoned to a rural zone (other than the rural living zone)
Rezonings to the following zones are excluded from windfall gains tax:
- GWZ – Green Wedge Zone.
- GWAZ – Green Wedge A Zone.
- RCZ – Rural Conservation Zone.
- FZ – Farming Zone.
- RAZ – Rural Activity Zone.
Land rezoned to correct an error
Land rezoned to correct an obvious or technical error is excluded from windfall gains tax.
We must be satisfied the rezoning is made to correct an obvious or technical error in the Victoria Planning Provisions or a planning scheme. The rezoning can be prepared under section 20A of the Planning and Environment Act 1987 or otherwise.
If part of the land is rezoned to correct an error, windfall gains tax does not apply to the value uplift to that part.
Transitional exemption
A transitional exemption may apply to:
- some rezonings which were underway before 15 May 2021
- rezonings where a contract of sale or option arrangement was entered into before 15 May 2021.
Read more about the transitional arrangements.