Windfall tax Victoria Australia

Windfall tax Victoria Australia

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E P started this petition to Tim Pallas (Victorian Treasurer)

The Victorian government is proposing a windfall tax,to be implemented on 1st July 2022.This applies to anyone that owns property in an area that is rezoned to residential.This can be industrial land,farmland,rural,etc.

The government is encouraging growth of suburbs,and development of rural land.They are pushing for this,forcing landowners to sell up.Not all want this to go ahead.Some would never have expected it where they live.

Landowners can sell,and will pay the tax.If they choose to keep their property,they will be required to pay this tax,once rezoning occurs.Of course,most won't have the funds to do this at that time,so the payment will be deferred.Interest will be applied until it is paid.Not only that,they will be paying massive increases in council rates,due to the increase in their property value.Most will be forced off their property anyway,unable to afford these costs.

This is how the windfall tax works.The property will be given a pre rezoning value,by the Valuer General Victoria.No doubt a conservative value,that will be made difficult to dispute.The difference between this value,and the eventual sale price of the property,will be taxed at least 50%. A gain of less than $500,000 is taxed at even more-62.5%. For example; a property valued at $800,000,sells to a developer for $3,000,000.This is a gain of $2,200,000. The government walks away with $1,100,000.That's not including any interest accrued,if the owner chooses not to sell.On the amount of $500,000,with tax of 62.5%,this leaves the owner with a mere $187,500.

For owners of large parcels of land-farmers for example-with land that may be worth millions-this becomes a massive 'windfall' for the government.The farmer,who has worked hard for this country his whole life,and who possibly had his land passed down to him through generations,now loses a fortune to the government,who sees fit to confiscate this money.

There is no mention of an exemption for those who own lower value property that will make a smaller profit,of $500,000 or less.This is not a lot of money in these times,considering the median house price in Melbourne is now well over $1,000,000.These people are not rich.They may have a lifestyle property of just a few acres.They are not walking away with millions.The extreme tax of 62.5% on their gain will leave many people unable to relocate to a property that is comparable to the one they are being forced out of.Their relocation costs must be taken into account,not to mention stamp duty on the new purchase.Instead of a 'windfall',they will be forced to downgrade.How is this fair?

The higher price paid for properties being taken by developers,is usually regarded as partially being compensation for owners who don't want to leave.They may have lived happily where they are for many years,and had no intention of leaving.How were they to foresee the development now occurring? It is distressing and heartbreaking,and a huge upheaval to people's lives,to be given no choice,and be forced out of somewhere you love.Then to be hit with this penalty on top,is disgraceful.

Not only are the landowners paying this tax,so are the developers.Double dipping by the government.Of course,these extra costs will be passed on to the home buyer.If the tax doesn't deter the developers from buying into potential growth areas altogether,which has already happened in some areas.House prices in new developments will skyrocket,as will prices everywhere,because demand will exceed supply.

This is a discriminatory tax.Those that have residential property that have seen it's value soar in recent years,perhaps into the millions,will be untouched by this horror tax.For now.Who's to say,this tax will not be applied to them in the near future.It is so easy for government to create a new tax whenever they see fit.They have no regard for anyone's situation,they just see the taxpayer as cash cows.The government are trying to convince us that they are only taking from those that can afford it,for the good of the community.To help Victoria recover from Covid.They have got this so wrong.They are going to push some people into hardship,possibly even sending some into mental distress and suicide.They are imposing a mental health levy on businesses,but adding to the mental health problem.

We all know that the money raised by this tax will most likely not be used to benefit the public.It will be siphoned off to who knows where-wasted-then the government will have to think of something else to tax us for.It never ends.

It's strange how this windfall tax has not been given publicity on the main news channels.As though the government are trying to sneak it through,afraid of public backlash.This cannot be allowed to pass.It is a mistake,and is inevitably going to be devastating for Victoria.This will affect anyone in an area that is likely to expand.With the population growth we have,so many Victorians are going to be hurt by this.Whether it's by losing their property,and their money.Or whether it's paying higher and higher prices for a home.Whether it's seeing a loved one damaged by this.

Please,help stop this unfair and excessive tax.


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