The Property Council is urgently calling on the next state government to abolish the punitive Windfall Gains Tax, arguing that its removal would deliver an immediate and lasting boost to confidence, construction and economic growth.

New research conducted by Mandala Partners, forming part of the Property Council’s 2026 Victorian election platform, reveals that scrapping the WGT would inject up to $1.4 billion in additional private investment each year by 2030.

The findings are clear. Abolishing the WGT — which raised just $15 million in revenue in 2024–25 — would deliver 3,100 new homes annually, support 2,700 jobs and generate $370 million in additional economic activity for Victoria every year.

The WGT, which exists only in Victoria, applies to certain types of land that have been rezoned, often for residential or commercial use. In practice, it significantly undermines project feasibility, deterring developments that would otherwise deliver housing supply, employment opportunities and broader economic benefits across metropolitan and regional communities.

Victoria’s property sector is already the most heavily taxed in the nation, with 42 per cent of state government revenue coming from property-related taxes — well ahead of any other state. The WGT is just one of several measures weighing on the industry at a time when new housing and investment are urgently needed.

The economic consequences are becoming increasingly evident. Since 2022, Victoria has experienced a 53% reduction in global investment, reflecting growing concerns about the state’s restrictive tax environment and policy uncertainty.

Property Council Victorian Executive Director Cath Evans says the WGT is contributing to keeping home ownership further out of reach for Victorians.

“Instead of raising meaningful revenue for the state, all the Windfall Gains Tax does is kill projects and deter investment, pushing money for new homes to other states," she says.

“The evidence against WGT is overwhelming. It’s doing real damage, and the cost to housing supply and jobs far outweighs the small amount of revenue it brings in."

Evans said investor confidence in Victoria has deteriorated sharply since the tax was announced in 2021, with both domestic and international investors choosing jurisdictions with clearer, more stable tax settings.

“This election is a chance to reset. Abolishing WGT, along with unlocking global investment opportunities, would be a clear signal that the next government is serious about fixing broken tax settings and getting housing and investment moving again,” she says.

Evans says that the Victorian property industry stands ready to play its part in delivering Victorians’ future prosperity.

“We have an unprecedented opportunity to build the homes, workplaces, and vibrant communities that will define our state's success for generations to come," she says.

“But for the industry’s capacity to be truly unlocked, we need a government partner with a commitment to sensible, sustainable policy which promotes confidence and certainty for investment into Victorian property, both from within Australia and from overseas.”

Architecture News & Editorial Desk

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