When land rezoning results in a massive increase in the value of land, developers pocket huge windfalls and Victorians miss out.
The Greens will introduce a rezoning windfall tax to reduce land speculation and the potential for corruption in the planning system and ensure developers pay their fair share.
Rezoning often happens on ex-industrial land, or in farmland on the edge of the city. When the land is rezoned, property developers and large landowners can make massive, windfall profits. We believe these windfall gains should be shared with the community, with additional revenue invested in public transport, schools and other infrastructure.
The Greens will implement a Windfall Rezoning Tax on increases in land value due to rezoning. Our proposal is that the tax would be levied at 75% of the difference between the officially assessed land value before the rezoning compared to the land value afterwards. The details of the tax will be finalised through a period of consultation.
Victoria’s recent planning history is ripe with examples of property developers making millions from rezoning decisions. As Planning Minister, Matthew Guy frequently rezoned large swathes of land, handing millions of dollars to developers and land owners connected to the Liberal party.
It is time for government to stop rigging the economy to benefit large scale landowners and property developers with connections, and instead capture the value from rezoning so it works for the interests of all Victorians.