THE State Government’s plan to move the payment time for the Growth Area Infrastructure Contribution (GAIC) tax will not alleviate the financial burden on the landowners.
The Government has indicated plans to change the point of charge to the Precinct Structure Plan (PSP) stage, step two of the four stages of developing farming land for housing.
Land goes through four stages as it moves from farming land to being developed for housing. Inclusion in the Urban Growth Boundary (UGB) is the first stage of the process, the second stage is inclusion in the PSP.
The third stage is the granting of a planning application for development and the final stage is the actual subdivision and development.
"While we welcome Planning Minister Justin Madden’s comment in [Thursday’s] Age that the GAIC is to be reviewed, we cannot support a PSP trigger point and will continue to push for the tax to be payable when a planning permit for development is granted, thus making the tax payable by whoever develops the land rather than the land owners," Michael Hocking, Taxed Out chairman said.
The view that the GAIC should be paid by developers is now supported by Labor MP for Melton Don Nardella.
Mr Nardella said last week that the GAIC should be "paid for by developers, not landholders or local ratepayers."
"I have spoken to, and listened to, many local landholders and residents regarding difficulties the GAIC will impose on them when they sell their land once it is within the UGB," he said.
"As a result, I have acted to personally express their views to the Minister for Planning."
Member for Seymour Ben Hardman said efforts to ensure the GAIC is applied fairly are continuing.
Mr Hardman, Mr Nardella and other interface MPs met with the Mr Madden last Wednesday (October 7) to continue representing their constituents’ strong views on the issue.
"Through many representations I have made on behalf of my constituents, the Minister is well aware that the State Government’s proposed legislation on GAIC has caused a great deal of concern and anxiety for families and landowners in my electorate," Mr Hardman said.
"In meeting with the Minister again this week, I am continuing to lobby for fairness in the way the cost of providing necessary infrastructure for new communities is met.
"Significantly, many landowners have stated it is very unfair to make the contribution payable at the first sale of land rather than at the time of development, which may not occur for many years after the sale.
"All who have contacted me believe that developers, not landowners, should bear the costs of providing infrastructure."
Mr Hocking said that if the Government’s intention is to move the GAIC payment point to the PSP stage, then what landholders seek is only a small step away.
"Once a PSP is approved the next requirement for development is a planning permit with almost all developers seeking approval immediately. Therefore the Government will still receive the revenue in a timely manner," he said.
"However, the tax burden is shifted from the landowner to the developer and that is a massive change …"
The Government will meet with industry groups over the coming days to outline new plans for the tax.
Taxed Out has received no direct information from the Government and will be seeking an urgent meeting with Mr Madden on behalf of affected landowners.
Since the GAIC tax was proposed the group has only been granted one meeting with the Minister, which was in July.






