A new windfall tax on rezoned land would be legislated "as soon as possible" in a bid to bring certainty to the market, the state government has promised.
Developers and farmers are both concerned about the tax that they say has the potential to put a handbrake on new housing estates in Warrnambool, and also make some farms unviable.
Real estate agents and developers sounded the alarm last week on the tax saying it could increase the price of a block of land for first home buyers by as much as $30,000 a block.
"The government is looking to legislate the tax as soon as possible to provide certainty to the market, balanced against the need to consult with industry," a government spokesperson said.
The Windfall Gains Tax is forecast to generate tax revenue of approximately $40 million per year.
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"We will continue to work with stakeholders on the implementation of these measures, which ensure everyone pays their fair share to support jobs, new housing and Victoria's economic recovery," the spokesperson said.
The windfall gains tax will apply to uplift in the value of land that is due to rezoning decisions.
The tax will be calculated at the time the rezoning decision is gazetted, but payment may be deferred until the next dutiable transaction.
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