SHADOW Minister for Planning Matthew Guy has asked the Victorian Parliament’s Finance and Public Administration Committee to call Planning Minister Justin Madden and the Growth Area Authority (GAA) before it to explain the proposed Growth Area Infrastructure Contribution (GAIC).
Mr Guy believes the explanations that have been given up until this point have been "woefully inadequate" and have left residents, councils and industry "in the dark about this new tax."
Mr Guy said the Minister and GAA should provide full and frank evidence explaining why the tax is aimed at landholders and not at developers.
"The only way to make the Minister and the Growth Area Authority answer in full is to haul them before this Committee and to seek answer under oath," he said.
After eight months, the GAIC is supposedly still in the drafting phase, yet the Government has announced several amendments to the tax despite refusing to release any details beyond a handful of information sheets.
Mr Guy described the Government's failure to keep Victorians informed about the new growth area tax as "atrocious."
"This tax will reap more than $2 billion for the government from residents and the construction industry, yet the government still refuses to tell us all the details.
"The only way to end the uncertainty is to have the Minister and the GAA answer questions in a full public hearing of the Finance and Public Administration Committee, and it must be done as soon as possible," Mr Guy said.
At a Parliament sitting last Tuesday Mr Madden told the chamber that the GAIC is "fundamental" to moving the Urban Growth Boundary.
Mr Madden said that considering the "extensive and significant profits that are likely to be made" and the extensive investment that these communities will need, the GAIC is "relatively modest" but the Government will "still provide the lion’s share of funding for all the infrastructure."
He also said that the UGB would not be moved unless the tax is passed through Parliament.
Jeanette Laffan, secretary of Taxed Out Northern Branch said the comments made by Mr Madden made it clear to the group that he’s taken nothing on board from the meeting with landowners.
"Our view is for majority of landowners they’re not going to get windfall. They’re better off living outside the boundary ... for him to say that a $95,000 tax is modest is an insult."
Taxed Out disputes the Government’s claims on ABC radio that changes made to the GAIC proposal have "fixed the problems" for two thirds of landowners within the UGB, and that the majority of remaining landowners are developers or have their land under contract.
"Contrary to Mr Brumby’s comments, the people affected by this proposal are not developers or land speculators, they are Victorian families, farmers and elderly residents," said Michael Hocking, Taxed Out chairman.
Ms Laffan said Taxed Out are not opposed to the GAIC per se, but they believe the charge should be levied at the development stage.
"He admitted the legislation was drafted just 20 hours after submissions closed. Why bother having people make the effort to write in? We honestly believe he called a meeting just to say he met with us."
Ms Laffan said people are disgusted that Mr Madden hasn’t come to face community members about the GAIC, but isn’t surprised by it. She said that any future meetings with him would just be a waste of time.
"It still has to be passed through Parliament and we are still hopeful the Greens and the DLP will join with the Liberal Party and vote the legislation down," she said.
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Residents "in the dark" on land tax, says MP
