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Dear Taxed Out members,
A meeting of Taxed Out representatives with government last week has confirmed the following:
- All landowners over 1 acre will have a Land Tax Notice registered on Title.
- The notice will indicate to a purchaser that your property may be liable for a GAIC tax when sold.
- If you own land under 10 hectares with a habitable dwelling there will be no upfront tax on sale with the full liability payable of either ($80,000 or $95,000 per hectare indexed), when the land is developed.
- If you own 5 hectares of vacant land there will be no upfront tax on sale with the full liability payable when the land is developed ($80,000 or $95,000 per hectare indexed).
- There are no guarantees that these thresholds will not be reduced in the future.
- If you own 1 square meter above the 10 hectare trigger you will pay a GAIC of which 30% is payable upfront. On 10 hectares that is calculated in the following way:
10.00001 x $95,000 =$950,000 of which 30% ($285,000) is payable on sale. The balance ($665,000 indexed) is payable when the land is developed.
Ted Baillieu has the power to defeat this legislation in the Upper House on the 25th of May. The Greens have stated they will oppose the legislation.
No other landowner in Australia pays an infrastructure tax yet the Liberal Party look set to give Brumby what he wants.
Make sure you tell them what you think.
Regards
Michael Hocking - Chairman of Taxed Out Inc.
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