Lasting sting

By Bridget Brady
The government yesterday announced plans for more changes to its widely debated Growth Areas Infrastructure Charge (GAIC) that was defeated in parliament recently.
The changes would see purchasers pay 30 per cent of the GAIC tax when they bought the land and the remaining 70 per cent in stages as the land gets subdivided.
The State Government plans to introduce the tax to purchasers of land in the Urban Growth Boundary (UGB) to cover the costs of vital infrastructure for the new communities.
Mr Guy said it was only “fair and reasonable” that the tax was paid at the point of development, and the plans announced yesterday were not the best outcome.
“This suits the big developers but doesn’t suit your average landholder living on the fringe of Melbourne,” Mr Guy said.
Planning Minister Justin Madden said the government had singed a Memorandum of Understanding with the Property Council and Australia and the Urban Development Institute of Australia that spelt out the details of how the GAIC would be modified for the industry.
“This is a vital issue which needs to be resolved and there have been important concessions made by both sides,” Mr Madden said.
But Mr Guy said the agreement with the development industry did not include all stakeholders’ opinions.
“Negotiating in secret by a handful of people does not mean it’s going to be a good outcome,” Mr Guy said.
Taxed Out chairman Michael Hocking said the deal was done with developers, for developers.
Parts of the Clyde area were under investigation to be included in the UGB. The State Government says it will not alter the UGB if the GAIC was not passed.