The report, conducted by Mandala Partners and to form part of the Property Council's 2026 Victorian election platform, shows that abolishing the WGT - which raised just $15 million in revenue in 2024-25 - would also deliver 3,100 new homes annually, support 2,700 jobs and generate $370 million in additional economic activity for Victoria.
The tax, which only exists in Victoria, applies to certain types of land that have been rezoned, often to a residential or commercial use. The tax vastly reduces project feasibility and is stopping a wide range of new projects that would create new homes, jobs and economic growth across the state
Victoria's property sector remains the most harshly taxed in the nation, with WGT making up just one of the taxes holding back the industry. 42 per cent of government revenue comes from property taxes, well ahead of any other state.
The impacts on Victoria's economic prospects are severe. New research shows that Victoria has experienced a 53 per cent reduction in global investment since 2022 alone due to its restrictive tax environment.
Property Council Victorian Executive Director Cath Evans said 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.
"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," she said.
Ms 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 said.
Ms Evans said 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.
"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."
