On 2nd December 2008, the Victorian Brumby 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 Brumby 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 Brumby 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 Brumby 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, however after being referred to the Victorian Parliament's Dispute Resolution Committee amended legislation was voted through the parliament in June 2010 that made 30% of the GAIC payable on the first property sale with the remaining 70% becoming a debt against the property, accruing penalty interest and payable when the land is developed.

The then opposition Liberal/Nationals Coalition after consistently argueing against an "upfront" GAIC subsequently released a policy statement in the lead-up to the November 2010 election stating that if elected they would amend the GAIC legislation to make it 100% payable at the point of development.

Following the Liberal/Nationals Coalition win in the recent state election we are currently awaiting further details from the new Baillieu Government about timeframes and details of the new GAIC draft legislation. We will continue to represent the interests of landowners until this new legislation passes through parliament.