By Amy Hume
LANDOWNERS in Mitchell’s south have welcomed the Coalition’s introduction of a bill to Parliament that will reform the Growth Areas Infrastructure Charge.
Planning Minister Matthew Guy announced the introduction of The Planning and Environment (GAIC) Bill 2011 on Thursday.
He said the bill would allow for 100 per cent deferral of the subdivision process and will provide for in-kind work agreements as part of full payment of the GAIC.
Mr Guy said it was an improvement on the up-front costs that were previously imposed on home buyers.
“The Victorian Coalition Government is fulfilling its election commitment to move all of the GAIC payment to the statement of compliance time,” he said.
“The government has always stated the GAIC should only be paid by those who choose to develop their land.”
He said the legislation would ensure 100 per cent of the GAIC is paid at the time of Statement of Compliance.
“The move to allow in-kind works as a method of paying the GAIC will allow an agreement between the Coalition Government and a developer to fund state infrastructure in a growth area.”
Landowner group Taxed Out has waited more than two years to hear this announcement.
The group has been lobbying for the tax to be charged at the point of property sale or development since 2008.
Taxed Out chairman Michael Hocking said the GAIC reform was good news for landowners, developers and home-buyers.
“This is clearly the fairest and most efficient method of collecting development charges and brings Victoria in line with the rest of Australia,” he said.
“These amendments reinstate property rights the Brumby Government took from families and the elderly living on the outskirts of Melbourne.”
He said the group has seen many struggle since the Brumby Government introduced the GAIC.
“Since Labor announced its upfront GAIC policy in December 2008, Taxed Out members have witnessed properties failing to sell, contracts for sale falling through and mortgage finance refused,” Mr Hocking said.
He some landowners had even unwittingly triggered the GAIC and now owe the State Revenue Office thousands of dollars.
Shadow Minister for Planning Brian Tee said the proposed changes to the GAIC could leave families building homes without important infrastructure such as schools, health facilities roads and transport.
“This delay means families will move into their homes before the services are in place,” he said.
“The Bailleu Government’s changes are deeply flawed.
“Families will be living in half-finished communities without schools, public transport, health centres and roads.”
Mr Tee said developers were the big winners from the proposed changes.
“Developers won’t pay the charge until the land is nearing subdivision,” he said.
“This government has sold out homeowners in their hurry to placate developers.”
Donna Petrovich, State Member for Parliament for the Northern Victoria Region, said the GAIC reform is what the community wants.
“Landowners, developers, building industry representatives and the Taxed Out group have long argued that the GAIC should only be paid at the end of the development,” she said.
“Many of my constituents were very concerned about Labour’s upfront model – both its negative effect on farmers and other landowners and on housing affordability.”
She said the GAIC reforms will reduce developer holding costs and make housing more affordable while enabling some infrastructure growth areas to be brought forward.
She said the bill outlines that all funds raised through the GAIC would be used to provide vital infrastructure and to oversee the development of growth areas of Melbourne, including Beveridge and Sunbury.
The GAIC is expected to contribute up to 15 per cent of the cost of providing state infrastructure and services in growth areas.
Half of the GAIC revenue collected will be spent on building and improving public transport infrastructure and the associated costs.
It will also include core community infrastructure for transport; the environment; community facilities for education, recreation and health; and economic infrastructure.
Decisions about the use of revenue will be made as part of the Victorian Coalition Government’s annual budget process.