While council-owned land can be rezoned for social and affordable housing development, the state government absorbs a significant portion of funds through the application of windfall gains tax. These funds could otherwise be focused directly on social housing development and maintenance.
This incentivises the sale of council-owned land to private developers as opposed to retaining land to meet housing targets. Rachel asked if the government would consider windfall gains tax exemptions for councils for the purpose of meeting community social and affordable housing needs.
Wednesday the 3rd of June 2026,
Victorian Legislative Council
Rachel Payne (South-Eastern Metropolitan):
My question is for the Treasurer.
Over the past five years, Cardinia Shire has seen a 53 per cent increase in people sleeping rough, with more than 3800 households experiencing housing stress.
To support my constituents, social and affordable housing in Cardinia must be raised from 0.9 per cent to 7 per cent.
High windfall gains tax rates disincentivise councils from rezoning land to meet housing needs. Cardinia Shire Council has reported that they are already racing to keep up with maintenance costs of community facilities and amenities.
Similarly, Knox City Council reported that after rezoning and tax expenses council funds are simply inadequate to develop and maintain the required affordable housing in the community.
Will the Treasurer consider windfall gains tax exemptions for Cardinia and Knox councils for the purpose of social and affordable housing development?
[Written response pending]
Note: Rachel has previously directed this question to the Minister for Local Government on 19/3/26 but was asked to redirect the question to the Treasurer.
Related:
- South Eastern councils need state support for affordable housing – Rachel Payne
- Sustainable funding for Knox library – Rachel Payne
- Public housing safety in the south-east – Rachel Payne
- Kingswood redevelopment: Building homes on a floodplain – Rachel Payne
- Community calls for Cranbourne train line extension – Rachel Payne
