The GAIC is a tax proposed by the Victorian Government of $80,000 per hectare for land included in Melbourne's Urban Growth Boundary (UGB) in 2005, and $95,000 per hectare for land brought into the UGB this year. It is to be charged at a flat rate regardless of sale price, and is payable on the "first property transaction" and therefore upon sale, transfer or subdivision. It affects thousands of property owners on Melbourne's fringes.
You can find more information about the GAIC and Taxed Out by clicking on the "GAIC" and "About Us" tabs at the top of the page.
The problem with the tax in its present form is that it is payable on the first sale of land after it is included in the UGB, despite the fact that much of this land will not be developed for decades. Taxed Out believes that the GAIC should be charged when land is actually developed.
Hi Paul,
It is a bit much to get your head around without spending 6 or 8 hours reading all of the details, but I will put the whole thing in a nutshell for you.
This proposed new tax is only to be paid by farmers, hobby farmers,and small landowners living in rural areas around the perimeter of the suburbs. If you own say 6 acres this new Tax will cost you on average, say 40% of the sale price of your property, talking rough numbers. If you own 20 acres, it could cost you 60%. If you own 100 acres, the tax could exceed the sale price of your property. Meaning you would pay the entire proceeds in tax and still owe them money.
Can you imagine how angry people in Kew or Preston or Richmond would be If the Government was trying to take half of the sale price of their homes? Thats why people on this site are angry.
Cheers Paul.
Paul, many people have been misdirected by the govt. I have lived and worked on my property for 23 yrs, buying in the back blocks where no one else wanted to live. Now after all that hard work, the govt decrees that I should have a tax placed on my title if I wish to sell. You really need to read more about this tax as when they come for you, then you'd be fighting too. A tax on my property that is not worth what the govt tells the public its worth. I can only sell to a developer if this comes in, but a developer will not want my land for years. So what do I do in the meantime if I had to sell? There are thousands of people who yes are angry.. angry because the govt has us in limbo unsure of our future. If you had to sell your home, would you be happy to pay more than 40% into tax. I'd think not! Read a bit more before you judge.
