Residents rile at tax ‘grab’

By Bridget Brady
A COMMITTEE formed to fight the Growth Areas Infrastructure Charge (GAIC) scheme say the tax is “principally wrong”.
The treasurer of Taxed Out, Gina Abraham, said the scheme took away people’s livelihood and would “rate people out” of their homes.
More than 5000 hectares of land in Casey is being investigated for the extension of the Urban Growth Boundary (UGB).
The region has been identified as a residential growth area under the State Government’s Melbourne @ 5 Million urban development plan and the boundary will mark the limit of the city’s growth under the scheme.
As part of the GAIC scheme, those whose land is brought into the UGB in or after 2009 will be charged a levy of $95,000 per hectare when they sell.
But Ms Abraham, a Devon Meadows resident, said the tax should be paid at the time of development, not the first point of sale.
“Why should we be penalised?” she said. “If the government is willing to introduce a $95,000 tax they should be able to assure us of this 10-fold windfall gain. It’s a quick grab for cash.”
“They say our property values will skyrocket. How are we supposed to know this for sure?”
Ms Abraham said the purpose of Taxed Out was to increase awareness of the tax and provide people with updates.
“Our primary agenda is to have it (tax) moved from the first point of sale to the point of development when plans and permits have been approved by council.
“This is when the tax should be triggered.”