Council fights ‘greedy land tax grab’ over kinders, parks and gardens

Sydney Morning Herald

by Adam Carey

February 22, 2026

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Council fights ‘greedy land tax grab’ over kinders, parks and gardens

A Western suburbs council in Australia has launched a multimillion-dollar challenge against land tax assessments, accusing the State Revenue Office of improperly taxing public and community assets. Wyndham Council is disputing over $5.359 million in land taxes paid between 2021 and 2023 on more than 20 properties, including parks, kindergartens, sports fields, and infrastructure reserves. The council claims the state government is engaging in a “greedy tax grab” by imposing land tax on non-business用途土地, which they argue should be exempt under existing laws. The controversy centers on various parcels of land, ranging from a tiny 18-square-meter garden bed near Werribee’s Bridge Hotel to a 62-hectare site earmarked for a future suburb and sports stadium in Tarneit. The council argues that these lands are used for public services or community purposes and should not be subject to land tax. For example, a caretaker agreement with a local farmer on the Tarneit land was deemed taxable when the farmer sold crops, despite no revenue being generated for the council. The council has called for an investigation by the Auditor-General to determine if similar taxes are being improperly imposed across all 79 Victorian councils. Wyndham mayor Josh Gilligan has criticized the State Revenue Office’s approach, stating that taxing these properties deprives the council of vital funds needed for essential services and results in double taxation of ratepayers. This dispute highlights broader concerns about land tax exemptions and their application to public assets. If successful, Wyndham could secure refunds not only for its own overpayments but potentially pave the way for similar challenges across Victoria. The outcome of this case could have significant implications for local governments and public service funding in the region.

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Originally published on Sydney Morning Herald on 2/22/2026