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by AMY HUME
LANDOWNERS have been left out of a State Government deal with development industry bodies on a formula for funding infrastructure within an expanded urban growth boundary (UGB).
Under the new agreement developers will pay 30 per cent of the Victorian Government’s Growth Areas Infrastructure Contribution (GAIC) when they purchase land and the remaining 70 per cent will be paid in stages as the land is subdivided.
Lobby group Taxed Out believes the agreement has further complicated an already complicated issue and still leaves local landowners with serious concerns.
The group stated that much of the land earmarked for inclusion in the UGB would not be developed for 20 years yet the GAIC liability will be registered on their property’s title as soon as the legislation is passed.
This means the GAIC liability may exceed the value of the property, which has consequences for those with a mortgage, under financial strain, sick, retrenched, and those wanting to move or retire.
Taxed Out Chairman Michael Hocking said it was “an agreement made with developers, for developers."
“Here is another example of the State Government’s farcical public consultation process,” Mr Hocking said.
“The Premier has not met a single GAIC-affected property owner in 18 months yet he has had two meetings in two weeks with developers and the result is a secret deal that penalises families living on a few hectares in areas like Melton, Beveridge or Pakenham.”
Planning Minister Justin Madden said the agreement was vital for housing affordability, and that the UGB had to be extended and revenue secured to build infrastructure for new communities.
“Both the State Government and the development industry recognise the need to plan a long way ahead and ensure our growth corridors develop as compact, sustainable communities,” Mr Madden said.
“Implementing the GAIC enables our government to deliver community infrastructure to support families in growth areas.”
Mr Hocking said the new proposal meant the only likely purchaser for a property with a GAIC liability was a developer.
“If the land cannot be developed for 20 years they are simply not interested, so where does that leave someone needing to move off the land into a retirement home or hospital or someone needing to move for work?” he said.
“That is the sort of nightmare some landowners are facing yet the Premier only has time to meet and do deals with the top end of town.
“No amount of spin can alter the fact these landowners will have a land tax liability of $95,000 per hectare registered on their title irrespective of the value of their property. This is a deal hatched with developers to benefit developers,” Mr Hocking said.
Taxed Out has been calling on the State Government to adopt a simpler means for land taxation.
“Other parts of Australia have already implemented a simple system where 100 per cent of the tax is payable when development approval is granted, thus placing responsibility for the tax squarely on those seeking development approval.
“Taxed Out has consistently been calling for such a system to be adopted in Victoria,” Mr. Hocking said.