Australian Property News

Coalition fights growth boundaries tax

Posted on Wednesday, November 25 2009 at 8:03 AM

The Victorian Liberal-Nationals Coalition says it will oppose the State Government's current plan for a $95,000-a-hectare Growth Areas Infrastructure Contribution (GAIC) in Parliament.

The Government's legislation would see the buyers of land brought into the proposed Urban Growth Boundary slugged with the one-off tax.

Shadow Planning Minister Matthew Guy says it's an unfair, upfront tax that's opposed by councils, every major planning industry group, the development industry and thousands of landholders in Melbourne's growth areas.

"Labor's GAIC will cripple the development industry, it will cost Victorian jobs, it will cut stamp duty revenues and it will force landholders from their land. It has to be opposed," Guy says.

Guy says the Brumby Government has refused to negotiate with industry groups, developers or the Opposition at any stage over the past 10 months.

This is despite all groups acknowledging that a system of developer contributions should be put in place in Victoria, he says.

Guy says Labor's plan will greatly complicate an already complex planning system, will allow politicians to conduct sweetheart deals to waive or reduce GAIC liability for certain companies, and will be a huge upfront impost on developers.