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

Comments

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Jeanette  - Missed it by that much ...   |124.182.27.xxx |2010-05-04 17:48:34 I am the lucky owner of 11.5 hectares of GAIC-impacted land, completely surrounded by allotments under the threshold. Fancy my chances of fairing well when I need to sell? I'm off to pour myself a stiff drink ... Reply | Quote 11 1

Tony  - Well Done taxed out   |58.164.254.xxx |2010-05-04 23:08:34 Even though all was not achieved Taxed out has done an awesome job getting the GAIC pushed to this point. Thank you. Reply | Quote 18 1

Paul  - The whole thing's flawed   |58.164.254.xxx |2010-05-04 23:09:17 The nett outcome of this revised bill is that it has effectively created a situation where owners of large landholdings will delay selling to developers for as long as possible in an effort to recoup, via increasing land values, the 30% of GAIC deduction that potential purchasers will be attempting to negotiate (read extort). In the interim, smaller properties will increase in value dramatically due to the fact that alternative new developments will have a premium of $95000 per hectare attached to them by the time they become homes. Lack of foresight has just made Victorian home ownership even less affordable. Reply | Quote 7 1

stephen  - Amended GAIC set to pass through the Upper House t   |58.164.254.xxx |2010-05-04 23:10:17 See what happens when you trust the opposition partys? they let us all down it just goes to show us they're a pack of GRUBBY LITTLE MEN promise us the world and give nothing. Typical politician WHY WOULD YOU WANT TO VOTE THEY WILL ONLY SCREW YOU OVER NO MATTER WHO YOU VOTE FOR Reply | Quote 5 8

yvoon  - Gaic   |121.221.29.xxx |2010-05-05 21:52:49 Gaic can only be fair if 1.gaic charged when its ready for development, 100%. 2.pay according to per hac. I think this is the only fair way for all the land owners. Why this Government made it all complicated, wasted people's tax money is beyond my understanding.People gain more pay more, gain less pay less. When things are distorted, the real motive will go unnoticed. What's the true story ? Reply | Quote 8 0

LIZ  - rates   |124.182.3.xxx |2010-05-06 02:13:46 I guess we all knew it would go through in some sort of form eventually. Thanks to all the taxed out team for trying to fight the GAIC I attended many meetings and protest rallies in support and it was shame that not more people attended. A big concern now is of course when the zoning changes to residential on our rural properties what rates are the councils going to sting us with. Reply | Quote 8 1

Russell  - Commercial Farmers the Losers   |124.182.3.xxx |2010-05-06 02:14:16 It is the commercial farmers or land owners of more than 10ha who will bear the brunt of this legislation. It is clear the politicians of both parties do not care about thos who put the food on their table. Taxed Out has done a fantastic job of taking on this government. I think come November that Brumby and his mob should get kicked out of office. Reply | Quote 10 1

sjb  - gove debate date set   |124.182.3.xxx |2010-05-06 02:14:32 GAIC to be Debated on the 25 th May so good luck all!! Reply | Quote 4 0

yvoon  - Politics to prejudice Landowners   |58.167.1.xxx |2010-05-08 01:23:53 Hi Mr Methew Guy, I believe the Coalition doesn't like the politics to prejudice landowners.How about, if you were a developer and looking for a land to develop.Would you buy a land that is 10.1 ha. or 10 ha? There is one million dollars difference! Any business man knows the secret of running a success business.Is it 80% or 90% landowners ok now, the rest have to suffer? Put yourself into those people's shoes, how do you feel? I don't even bother to ask the Labor to think about it, but you, the Coalition to think again about this. As a matter of fact, NO landowners should pay till the development stage. then pay 100% per ha. In this way, there will be no manipulations,no prejudice by politics, no hassles. Why not choosing the simple way ? Reply | Quote 5 0

Judith  - Smoke & mirrors   |58.167.1.xxx |2010-05-08 01:26:11 Just read the government's media release. If it were possible, my opinion of Madden would have sunk even lower as a result of the line "Developers will pay 30 per cent of the GAIC liability when they purchase land, with the remaining 70 per cent to be deferred and paid in stages as the land is subdivided". Using the word "developers" when everyone has to pay it is deliberately deceptive - because developers will indeed pay it, but so will everyone else! I sent a letter to the Herald Sun explaining this after they ran an article about the GAIC on 4th May and wrote, "The draft laws also set in place an agreement that only 30 per cent of the contribution is paid when land is bought by a developer", but they didn't run it. I'll keep trying. I'll bet the govt has successfully conned most Victorians (and journalists) into believing this is a tax that only developers will pay. As for Madden's comments about "public transport infrastructure", does he really mean infrastructure (trains and trams), or just buses? I still maintain that buses aren't infrastructure. Reply | Quote 3 0

Michael at Woodstock  - Fight for all GAIC victims   |124.178.36.xxx |2010-05-09 15:06:11 Its time for every single landowner that's been dragged into this greedy, grubby GAIC tax net, to stand up for those still victimized by this tax proposal. Make the time right now to send Emails to the Libs, the Greens, and the news papers and "opinion" sections demanding a fair GAIC. The farmers, medium property owners and anyone with more than 10 Hectares are still having part of their life's work stolen from them. Stand up and scream bloody murder! They deserve our help now more than ever, because they helped save your properties! Don't let Matthew Guy off the hook! Demand he stands his ground to defend all existing landowners if he wants our votes at the upcoming election! At this point in time, only the Green's are demanding a "Parliamentary Inquiry" into the GAIC proposal on the 25th of May. My family and I will actively campaign against any and all parties that vote for GAIC prior to development. Every politician must be made to answer for their vote on the GAIC when we vote at the State Elections. Forgive nothing and forget nothing! Start printing the letter drops now! Michael at Woodstock May 9th 2010 Reply | Quote 11 3

Val Williamson  - Politicians back flip   |124.178.36.xxx |2010-05-09 15:06:50 I would like to know on what grounds the Liberals have based their decision to do a backflip ( I thought that was a Labour perogative) For 12 months the Liberal politicians have been consistent in their comments of stating their policies then when the crunch comes they do a double backflip with a few minor concessions -they have certainly not done any thing to encourage us to vote for them if they can promise one thing then change their minds without explaining why -A FULL & DETAILED EXPLANATION IS REQUIRED BY TED BALLIEU & MATTHEW GUY if they expect our support Reply | Quote 5 1

adriano  - I'm so confused ?????   |121.221.252.xxx |2010-05-10 21:25:16 So if a developer purchases 10 lots land (each 9.999999999999 hectares in size) nexty to each other.....do they pay zero dollars GAIC ? Reply | Quote 2 0

Jeanette   |121.221.252.xxx |2010-05-10 21:33:01 No GAIC would be payable when these blocks were purchased (provided they were clearly seperate sales) - only when the land is actually developed. However if that same developer (or in fact any purchaser) bought that land as one 99 hectare block then $2.82 million dollars in GAIC would be payable upfront, which would of course have a huge impact on the selling price. It all defies logic! Reply | Quote 1 0

Paul  - Where's Judas?   |124.180.3.xxx |2010-05-11 16:44:09 Why is Mr Matthew Jason Guy matthew.guy@parliament.vic.gov.au not on the list of contacts? Reply | Quote 2 1

administrator   |124.180.3.xxx |2010-05-11 16:50:19 Hmmm... not sure how he was left off. Matthew's email address was further down on the home page, but it has now also been added to the legislative council list. Reply | Quote 2 0

bob and jan wollert  - gaic   |124.181.141.xxx |2010-05-17 02:09:14 so far we are one of the lucky ones but lets all remember where we all were headed 18 months ago this grubby peice of legislation was going to be sneaked thru with as little information as possible if it wasnt for the efforts of taxed out we were all going to cop it up the backside lets direct our anger at the scource brumby and maddenand make them pay at the next election and support big ted and guy Reply | Quote 4 0

bob wollert  - gaic   |124.181.141.xxx |2010-05-17 02:10:35 i am one of the lucky ones at this stage. lets all remember back 18 months when tiny bits of information trickled out about this wonderful new contribution and how us greedy landowners were about to receive huge windfall gains as a result of being included in the new ugb well i am waiting and will be for a while yet with out the efforts of taxed out we were all being sold up the river by brumby the spin doctor and the footballer madden lets direct our anger back to them next november not ted and guy who have at least attended our rallies and listened to our concerns and won some concessions cos without their support we would all be hung out to dry personally i was born a labour supporter a shop steward for many years union member all my working life worked at fed square and the wharf for many years but will never ever vote labour ever again after this tax by stealth was tried to be sneaked in by this incompetant bunch of losers Reply | Quote 6 0

Paul  - Done and dusted   |124.180.247.xxx |2010-05-24 21:57:18 Bugger! Reply | Quote 2 0

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