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Taxed Out going to town

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TAXED OUT will continue to show the Government how they feel about the Growth Area Infrastructure Contribution legislation when they took to the steps of Parliament House this week.
Speaking out: Residents from Greenvale and Beveridge gather at the top of Mt Fraser in Beveridge, looking over the northern growth region, which could become a tax windfall for the Government if the GAIC is passed.Organisers are asking people come along and demonstrate their opposition to the GAIC legislation.
"For all of you with a sign on your fence, bring it along or make a new one," the Taxed Out website says.
"We need to let Brumby and Madden know that we will not accept their bad policy, ignorance of public opinion, and smoke and mirrors tactics."
The protest began at 12.30pm (Tuesday November 24) on the steps of Parliament House.
The group is also launching a television advertising campaign that begins this week - the same week that the Lower House of Parliament is expected to vote on the GAIC legislation.The advertisement began airing yesterday on Channel 7. Slots include 7.30am on Tuesday November 24, Thursday 25 and Friday 26 during the Sunrise program, as well as slots leading into the 5pm news and during The Morning Show.
The government department overseeing the proposed expansion of Melbourne’s Urban Growth Boundary (UGB) have disregarded submissions on the legislation criticising the growth areas tax intrinsically tied to it, claiming that "the issue is generally considered to be out of scope."
The Department of Planning and Community Development (DPCD) recently released the public consultation final report on submissions relating to the expansion of Melbourne’s UGB.
The introduction of the controversial Growth Areas Infrastructure Contribution, the first of its kind in Australia to target the sale of family homes and properties, is tied to the boundary movement (the third in seven years).
Many submissions relating to the GAIC have been summarised in the DPCD final report.
"Many submissions indicated a lack of confidence that land values will increase to the extent required to pay the contributions, particularly for those land parcels expected to be furthest from the initial development fronts.
"A related concern raised was rates may increase based on a increase in land values, forcing any early sale at a significantly lower price than would have been achieved if the owner could afford to wait to sell," the report said.
The DPCD response to landowners concerns was "this issue is generally considered to be out of scope."
According to Taxed Out the Growth Areas Authority (GAA) refuses to provide any evidence to support the "value-uplift" theory on which the tax is based.
"The Planning Minister’s rhetoric has gone from declaring land values would increase 'up to ten times' through inclusion in the UGB to now saying landowners should feel 'optimistic'. All references to 'value uplift' have been removed from the latest GAA fact sheet."
Taxed Out’s recent submission to the Outer Suburban Interface Services Development Committee raises serious doubt over the validity of the GAA’s 'value uplift' claims.
The Property Council of Australia (Victoria) has raised almost identical concerns that value increase from inclusion in the UGB will not be significant enough to support a tax on the first sale of property.
Mr Hocking from Taxed Out predicted that soon every Labor politician in Victoria will vote in favour of taxing the sale of property over two hectares held by families and the elderly without a shred of evidence that it is reasonable to do so.
"It seems blind faith for the Labor party at the expense of due diligence and natural justice, is the order of the day.
"If the value uplift theory fails then there is no justification for the GAIC legislation in its current form. It has never been acceptable to pay Income Tax, Capital Gains Tax, GST, Stamp Duty or Land Tax on anything other than the facts – not just a flimsy theory," said Mr. Hocking.

 

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