Tell Labor and Liberal MPs to listen to the community on GAIC

Dear friends,

The Liberals this week voted for a motion in the parliament in support of the GAIC tax. This means the original GAIC bill, which was defeated in the upper house, will soon be brought back, with some amendments, after it was referred by the government to the undemocratic Disputes Resolution Committee.

We expect a motion known as Amendment VC55, expanding the Urban Growth Boundary, will be voted on during the week starting 25 May. Urban growth zoned land inside the new boundary will be subject to the Growth Areas Infrastructure Contribution (GAIC) tax, with some exemptions and some opportunities to defer the tax.

The Greens will be opposing the GAIC bill as amended. We think a fair tax would be a tax on subdivision, because this is close to the point where the infrastructure costs to the government arise and where the developers make their money.

We don't think it's fair to levy an infrastructure tax on land that might not be developed for another twenty years, or never.

We think the government, if it had a forward looking plan, could deliver infrastructure when and where it's needed, collecting the tax as needed. This tax is likely to collect only 15% of the money needed for that local infrastructure, leaving a big gap in the liveability and sustainability of new, city fringe communities.

Before amendment VC55 is voted on by the parliament, we call on the government and opposition parties to run an inquiry, to look into all these matters and consider the views of affected communities.

If you want your opposition to GAIC and Amendment VC55 to be heard, click on the link to send an email to key Labor and Liberal MPs, asking that they support an inquiry and allow the community to have their say.

Sincerely,

Greg Barber MLC
State Member of Parliament for Northern Metropolitan Region
Suite G-01 60 Leicester Street Carlton VIC 3053
P: 03 9348 2622
F: 03 9348 2699
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Debate on the amended Planning and Environment Amendment (Growth Areas Infrastructure Contribution) Bill 2009 will resume in the Upper House on 25th May.

Click here for a full amendments document.

Cick here for the government's media release.

Summary of the impact so far:

Land under 10 hectares on which there is a dwelling does not pay any liability when the land is sold however the full liability is paid when the land is developed.

Vacant land under 5 hectares is also excluded from paying an upfront tax with the liability paid at the point of development.

All land above 10 hectares incurs the liability of which 30% is payable on sale with the balance payable upon development approval.

It appears that 1 square metre of land above 10 hectares incurs an upfront tax and just under incurs no upfront tax.

Land above 10 hectares will trigger a minimum upfront tax on sale of $285,000. (10.001 x $95,000 @ 30% upfront GAIC of $95,000 per hectare)

These calculations can be made for land liable for the $80,000 per hectare tax also.

We understand a charge will be levied on all land above 10 hectares to secure the upfront liability.

There does not appear to be any process that allows landowners to apply for hardship relief. This avenue is only provided to a purchaser once the Legislation is introduced.

It is expected these changes will be approved in parliament later this month unless the Liberals/Nationals Coalition can be persuaded otherwise. If you are unhappy about their decision to support a GAIC on landowners tell them. Here is a full list of email addresses - simply copy and paste them into your email:

Legislative Council
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Legislative Assembly

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I hope you are one of the lucky GAIC-free landowners.

Regards

Michael Hocking

Small landowners to avoid growth zone tax, The Age, 4th May 2010

SMALL landholders in Melbourne's growth zone will be exempted from the state government's planned infrastructure tax in a deal aimed at getting the controversial measure passed by Parliament.

The Age understands the government has negotiated a bipartisan resolution for undeveloped blocks of land less than five hectares to be exempt from the growth areas infrastructure contribution until they are subdivided or developed. Properties up to 10 hectares with existing dwellings on them will also avoid the tax.

See also: Cheap land to open up in Melbourne's north and west, Herald Sun, 4th May 2010

**The findings of the Disputes Resolution Committee are expected to be presented to Parliament today or tomorrow. Details will be posted as soon as they are available.**

36 million too many, says Abbott, The Age, 30th April 2010

Meanwhile, Melbourne's urban area is set to grow by thousands of hectares next week after the government and opposition agreed to introduce an infrastructure tax for new suburbs.

It is believed agreement between the two major parties to introduce the new tax - estimated to raise $2 billion over 20 years - has been reached and details are being finalised after secret negotiations.

** Shadow Planning Minister Matthew Guy stated this afternoon that the Liberal/Nationals Coaltion will "accept a GAIC that is paid only by developers and that will not impact small and medium sized landholders in particular. The MoU signed by all the Industry groups in November is a position that we have not moved from as our basic policy position." **