The former owner of a 56.4ha development site has won a Victorian Civil and Administrative Tribunal battle against the State Revenue Office, quashing a $36.2 million windfall gains tax assessment.

The controversial tax—a 50 to 62.5 per cent levy to be paid when land value increases above $100,000 due to government rezoning—was introduced in Victoria in 2021. 

It was met with widespread criticism when it was implemented in 2023 with detractors arguing it had the potential to change land prices across Victoria. It also was critisised for how land was valued post-rezoning.