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TWO more Shires that will be affected by the introduction of the Growth Area Infrastructure Contribution (GAIC) have joined Mitchell and Melton in voting to oppose the proposed State Government tax in its current form.
Casey and Cardinia Shire Councils voted unanimously against the planned $95,000 per hectare GAIC being levied on landowners, and will instead push for the tax to be payable when the land is actually developed.
Both Councils intend to writing to Planning Minister Justin Madden to notify him of their position.
"The GAIC tax should be paid by developers at the point when land is actually developed, not up-front on landowners. It is pleasing that both Councils support our view that this is the fair and reasonable way to levy such a tax," Michael Hocking, Chairman of Taxed Out, said.
Melton City Council and Mitchell Shire Council have already voted to oppose the current GAIC proposal and National Seniors Australia, with 41,000 members in Victoria alone, supports the introduction of the tax at the point where development approval is granted rather than on landowners.
Taxed Out is currently seeking meetings with councillors from Wyndham, Whittlesea and Hume to discuss the proposed GAIC and how it will affect landowners in those areas.
"Unless the GAIC is levied using a different trigger point, instead of title ownership, the current problems associated with loss of borrowing capacity, inheritance, marriage break-up, superannuation and loss of equity will continue." Mr Hocking said.
"The simplest way to resolve all these issues it to link the GAIC to a different mechanism such as the granting of a planning permit for development. If you do that you don’t need the hardship committee and no one is adversely impacted."
The State Government’s proposed GAIC applies to land brought into the expanded Urban Growth Boundary in or after 2005.
A flat rate of $80,000 per hectare is to be applied to land brought into the boundary in 2005 and $95,000 for land brought into the boundary in or after 2009. The tax is payable on the first property transaction and therefore upon sale or subdivision.
Taxed Out believes the tax is squarely targeted at landowners rather that developers and is to be charged at a flat rate per hectare regardless of sale price.
The new tax will apply retrospectively from December 2, 2008, and will be indexed annually should it be passed through State Parliament.
The proposed legislation has been delayed and is now expected to come before Parliament in November.
The Victorian Parliament’s Outer Suburban/Interface Services and Development Committee Inquiry into the Impact of the State Government’s decision to change the Urban Growth Boundary is now calling for submissions.
Submissions close on Monday October 12 and Public Hearings will be held on October 20 and 22 between 10am and 4pm at Parliament House in Melbourne.
Instructions on how to make a submission are available at the Taxed Out Inc website. Go to and then click the link ‘latest news’.
Mr Hocking will be making a submission on behalf of Taxed Out Inc, but the group also urges all members to also make individual submissions on how the GAIC will affect them personally.
If you need any help to write your submission please contact your local Taxed Out committee and they will arrange assistance.
If you previously made a submission to the Growth Areas Authority regarding the GAIC this could be used as the basis for your submission to this inquiry.