Coalition reforms GAIC to improve housing affordability, Minister for Planning Matthew Guy media release, 2nd June 2011

Planning Minister Matthew Guy has moved to improve housing affordability and reduce red tape by introducing a Bill into Parliament that will reform the Growth Areas Infrastructure Charge (GAIC).

Mr Guy said the introduction of the Planning and Environment (Growth Areas Infrastructure Charge) Bill 2011 would allow for 100 per cent deferral of the GAIC to the end of the subdivision process, and provide for in-kind work agreements as part or full payment of the GAIC.

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Sue  - Reforms   |121.219.236.xxx |2011-06-02 11:46:41 Well done Matthew Guy for keeping your word and introducing this new amendment to the GAIC. You have restored my faith in the Liberal Government. Reply | Quote 7 1

Nola  - Councils take note   |121.222.40.xxx |2011-06-02 16:30:29 A job well done by the Liberal party, now for those labor councils to take note...leave the landowner alone that is now in the UGB, let us stop fighting and go back to enjoying our lifestyle that is the reason we fought so hard for in the beginning! Reply | Quote 7 0

Claire  - Payment in kind   |58.170.49.xxx |2011-06-13 23:26:44 IceCreams and Raspberry for M Guy! As much as I applaud the decision to defer payment of the GAIC to the end of the development stage (clap), I'm disappointed by the new clause of "in kind work agreements". Here's the scenario: I have 30 acres (like most people) - which means that any offer to me attracts about $1M of GAIC payable by the developer (once its in legislation). However, the developer could build roads, power lines, etc = infrastructure, as part of their 'in kind payment'. So far, that's my understanding. Question is, what's to stop a developer from being a pig in the trough and charging double price for building these roads, gas lines, etc. If this is left alone, their GAIC contribution would only be a portion of the amount required to be paid. Here's me with GAIC to the Government (example only): 30 acres - say $5M (- landtax, rates, capital gains, etc) developer GAIC = $1M (+CPI, GST, etc) Government builds infrastructure (could even invest some $$ for interest earnings). Here's me with GAIC as "in kind payment" 30 acres - SAME AS ABOVE Developer GAIC = infrastructure cost of say $750K, but charges $1M. SAVES $250K. Government = $0 End result: Government gets ripped off, Private developer gets the benefit. Little people lose. Hence icecream prize for payment deferral, but a huge raspberry for "in kind payment". I didn't vote you in for this surprise!! Claire Reply | Quote 0 0

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