By Melissa Grant andBridget Brady
A CONTROVERSIAL land tax will still hit property owners in the hip pocket despite plans to levy buyers rather than sellers, according to a lobby group.
Taxed Out chairman Michael Hocking has dismissed changes to the Growth Areas Infrastructure Charge (GAIC) scheme, as announced by the State Government on Friday, as government spin.
Planning Minister Justin Madden said charging the buyer, rather than the seller, was the “fairest way” to help pay for the infrastructure required for Melbourne’s newest suburbs.
However Mr Hocking disagreed, saying that levying buyers would see property prices dwindle.
“It hasn’t altered any issues for landowners,” he said.
“It effectively means there is a debt on the property.”
Under the scheme, those buying properties included in the Urban Growth Boundary in or after 2009 will be subject to a $95,000 per hectare levy. This could include properties in the Clyde investigation area. Properties brought into the boundary in 2005 will attract a charge of $80,000 per hectare for buyers.
Clyde Jersey breeder Winsome Anderson said she was relieved to hear news of changes to the “dreadful vendor tax”.
The 73-year-old widow said the previously proposed GAIC had thrown her freedom of choice out the window as she would have been faced with a bill of $2.5 million for her 26-hectare farm if she sold up.
“It was taking away my freedom of choice to retire when I wanted to retire.”
Mrs Anderson said some questions still remained, including what the value of her property now was.
Mr Hocking said it was easy for affected landowners to get excited about the changes to the tax, but warned the devil was in the detail.
“On face value the government has put so much spin on it.”
Taxed Out members are planning to target many Labor MPs at the next state election, including Cranbourne MP Jude Perera.
“Those politicians who came out two weeks ago saying they support landowners, it would seem that was a political stunt.”
The draft legislation is available for public comment until November 2 at 5pm.
Taxing time
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