What this means for you

How will activity centres change over time?

Once our plans are finalised and in place, each activity centre will slowly change over the next few decades, providing the new homes we need between now and 2051.

We expect larger and unused blocks of land will develop first. They provide the best opportunities to deliver new homes the soonest. Other areas, like streets with lots of existing homes on smaller blocks, will develop more slowly or may experience very little change at all.

Will the Victorian Government be building these homes?

Most new homes in activity centres will be built by private developers and landowners, not by the Victorian Government. The Victorian Government is not proposing to buy land for developing new homes as part of the Activity Centres Program.

Will changes to activity centres impact rates?

Your local council calculates your rates based on a number of factors, including the value of your land. Your land value is determined by an independent Victorian Government body, the Valuer-General Victoria.

Changes to planning rules that impact your property may impact your land value, as the value of land increases when it has the ability to accommodate more homes. This means increasing the amount of development allowed on your land may increase your rates.

However, there are many other factors that can influence your rates, including your local councils’ budget strategies, fluctuations in the housing market, and rate caps.

Landowners can lodge an objection if you disagree with the valuation of your property.

Find out more about land valuation at land.vic.gov.au/valuations.

Will windfall gains tax apply to the land in the activity centres?

The Windfall Gains Tax applies to land that is subject to a government rezoning resulting in a taxable value uplift to the land of more than $100,000.

There are several exemptions to the tax, including land used for residential purposes that is equal to or less than two hectares in size owned by the same owner or group. Such sites will be exempt from the tax.

The Activity Centres Program will rezone the catchment areas for all ten (10) activity centres to the Housing Choice and Transport Zone, and rezone the core of the Frankston, Preston and Ringwood Activity Centres to the Activity Centre Zone.

It is difficult to determine the likely number of properties to be affected by the tax due to the unknown taxable value uplift generated.

For example, rezoning the core of the Preston Central Activity Centre is not foreshadowed to significantly impact the taxable value of land because uplift is expected to be realised from the new overlay (which is excluded from the tax) instead of the new zone.

Due to the exemptions and the taxable value uplift threshold, the number of properties to be affected by the Windfall Gains Tax liability because of the Activity Centre Program is expected to be limited and as an estimate it is forecast there could be approximately 750 applicable properties across the 10 pilot centres.

The owner of the land that is subject to the rezoning pays the windfall gains tax. The liability for windfall gains tax arises upon the rezoning occurring. Owners of land liable to pay windfall gains tax will be issued with a windfall gains tax assessment with a due date for payment. They will have the option to defer payment until the next dutiable transaction or 30 years after the rezoning event, whichever occurs first.

It is important to note that council and government land is not exempt from the Windfall Gains Tax.

Have your say

Throughout 2025 and 2026, we will work with local communities, councils and stakeholders to better understand how we can improve access to housing while enhancing the things that make these centres great places to live.

If you live in or around one of the activity centres where we’ll be consulting throughout 2025, you will receive a newsletter in the coming weeks with more information about the program and opportunities to get involved.

Page last updated: 23/02/25