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Wyndham Council Contests $5.3 Million in State Land Tax on Public Properties

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Wyndham City Council Challenges $5.3 Million State Land Tax Bill

Wyndham City Council is challenging over $5.3 million in land tax assessments issued by the State Revenue Office (SRO) for more than 20 council-owned properties. The council has formally objected to these bills, which span from 2021 to 2023, and has requested a waiver for assessments in 2024 and 2025.

Disputed Properties

The properties subject to the land tax assessments include a variety of public and community-use sites:

  • Small garden beds, such as an 18-square-meter strip in Werribee.
  • Not-for-profit kindergartens and maternal and child health centers.
  • Community sports fields.
  • An animal pound.
  • Land designated for telecommunications towers and public parks.
  • Drainage channels.

Wyndham Mayor Josh Gilligan stated that the council is being taxed on properties that do not generate revenue for it, affecting funds for essential services. He argued that residents are "double-taxed" on facilities like kindergartens and sporting ovals and estimated that significant refunds might be due across all 79 Victorian councils. The council has also urged the Auditor-General to investigate the application of land tax to councils statewide.

Wyndham Mayor Josh Gilligan: "The council is being taxed on properties that do not generate revenue for it, affecting funds for essential services. Residents are 'double-taxed' on facilities like kindergartens and sporting ovals."

Major Tax Disputes

The largest single disputed bill, totaling $4.3 million, relates to 62 hectares of land in Tarneit. This site was intended for an 8000-lot suburb and a 15,000-seat sports stadium, part of a public-private partnership that has since stalled. The SRO's assessment was reportedly triggered by the sale of crops by a local farmer under a caretaker agreement, despite the council receiving no revenue from the sale.

Another contested assessment is a $19,837 bill from 2023 for Wyndham Harbour, a marina located in Werribee South on Crown land, which the council manages under a 99-year lease.

State Revenue Office and Policy Context

The State Revenue Office declined to comment on specific tax matters. A spokesperson stated that land owned by a municipality is generally exempt from land tax unless it is used for business purposes, though exceptions apply.

Dr. David Hayward, Emeritus Professor of Public Policy at RMIT University, suggested that this dispute reflects councils' efforts to regain control over their revenue streams, particularly following a decade of state-imposed rate capping. Victorian councils argue that rate capping impacts their financial viability and ability to deliver services.

Dr. David Hayward, RMIT University: "This dispute reflects councils' efforts to regain control over their revenue streams, particularly following a decade of state-imposed rate capping."

The disputed $5.359 million represents a small portion of Victoria's total land tax revenue, which is projected to be $9.254 billion for 2024-25. However, it is a substantial amount for an individual council. Cr Jennifer Anderson, president of the Municipal Association of Victoria, emphasized the ongoing need to scrutinize the land tax system to ensure exemptions for local government remain appropriate.