Tuesday, 3 March 2026

 Trung LUU (Western Metropolitan) (21:27): (2366) My adjournment matter is for the Treasurer regarding the windfall gains tax introduced under the Labor government. Victoria is in the midst of a housing crisis, a crisis that is hurting families, young people, renters and first home buyers across our state. The action I seek is to meet with the Treasurer to urgently review the windfall gains tax and reconsider its implications, assessing whether the tax is benefiting our housing system or worsening an already difficult situation by deterring private investment in new housing. At a time when Victorians are struggling, with housing affordability and rents having risen by more than 30 per cent since 2020, the government should be doing everything in its power to boost housing supply and support those trying to find a place to call home.

Introduced under former Premier Daniel Andrews, the windfall gains tax applies to Victorian citizens when their land had been rezoned by more than $100,000, and if the uplift exceeds $500,000, the tax captures 50 per cent of the increase in value. In practical terms, this means that every project that could deliver new housing, new jobs and new communities is being pushed to the edge of financial viability. The fundamental question is: does this tax support the creation of more homes, or does it discourage it? Because the consequences are real. When government policies make housing projects unviable, fewer homes get built. When fewer homes get built, prices rise and rent increases, and when this happens, it is first home buyers, young families and everyday Victorians who pay the price.

Analysts say that removing the windfall gains tax would support delivering up to 3100 additional homes every year, creating more than 2700 new jobs and injecting around $1.4 billion into the Victorian economy annually by 2030. These are homes that people need, jobs our community needs and economies and activities our state needs. Property taxation already makes up the largest component of state revenue, so it is not unreasonable for Victorians to ask whether adding yet another tax onto rezoning is helping or hindering the supply of housing in a state already stretched to its limits. A responsible government should always focus on increasing housing supply, not imposing taxes that undermine project feasibilities and put families further out of reach of home ownership. It is time we take a serious, evidence-based look at the windfall gains tax. It is time to ensure that our policy supports rather than constrains the homes that Victorian communities urgently need. I ask the Treasurer to conduct an urgent, immediate review of the windfall gains tax and reconsider its implications.