On 2nd December 2008, the Victorian Government released Melbourne @ 5 million, outlining a planned expansion of the Urban Growth Boundary (UGB) to accommodate Melbourne’s population growth over the next 20 years.

The Government also announced that all land of 0.41 hectares or more (with a few vague exceptions) that is brought into the UGB in or after 2009 will attract the new Growth Areas Infrastructure Contribution (GAIC) tax of $95 000 per hectare payable on the “first property transaction” and therefore upon sale or subdivision. Land brought into the UGB in 2005 will attract a GAIC of $80 000 per hectare. This new tax was to apply retrospectively from 2nd December 2008.

The Government’s public consultation and communication regarding this proposal was very poor, but word of its seriousness soon began to spread. A groundswell of opposition grew. Public meetings were held in the various UGB growth areas and as a result TAXED OUT was formed in June 2009.

We represent landowners in all areas of the existing and proposed UGB, as well as members of the public who are concerned about the unfairness of the State Government’s planning and taxation policies. TAXED OUT has always made it clear that we are not opposed to a development tax but we beleive that any such tax should be payable when land is actually developed, not up-front on the first sale of affected property.

TAXED OUT is a community-based, incorporated group. Our aim is to inform affected landowners and the general public about the issues surrounding the GAIC proposal and fight for a fairer outcome. All of our committee members act on a voluntary basis and the group relies on membership fees and donations to operate.

The GAIC legislation was defeated in the upper house of parliament on 23rd February 2010. We have won the first battle but the fight is not over yet and we will continue to represent the interests of landowners until this issue is resolved.

Our message to the Brumby Government…

The proposed GAIC is a grossly unfair tax.

Imposing this tax at a flat rate per hectare on the first property transaction places an unfair burden on landowners as it does not take into account differing property values, development potential or the nature of the property transaction.