Windfall gains tax
Bill TILLEY (Benambra) (10:12): Small rural councils are toeing the line at rate caps that are a fraction of inflation at the same time as new taxes rob them of a lifeline. At Towong the balance sheet looks positive, but it is artificially inflated by fire and flood money that is already committed. Towong is big; it is about 7000 square kilometres. With less than 6000 people, its capacity to generate income is limited. One option was to cash in on the growth of Albury–Wodonga and rezone its rural land to residential to create affordable land, more housing and additional ratepayer revenue. But the windfall gains tax will scuttle all that. There was no consultation, no modelling for this tax that pundits warned would disproportionately affect housing supply and affordability in regional Victoria.
From July, farmland at Tallangatta that is rezoned residential will be slugged with a tax equal to half the new value. Think about a $500,000 improvement and add $250,000 in Labor taxes, not to benefit the local community but to pay Labor’s debt. It is a disincentive to development and will add to the costs for those who have the aspiration to dream of owning their own home. Yesterday in question time the Minister for Planning was spruiking the government’s commitment to create affordable housing. This tax does none of that, and sadly it is also going to rob many councils of potential income.