A MAJOR Labor Party donor stands to earn up to $200m on land he bought north of Melbourne just a month before the Victorian Government pushed to build a freight terminal on the site.

And the $14.5 million 202ha purchase was settled on December 1, 2008, the day before the Government announced its controversial $95,000/ha growth areas infrastructure tax would hit all future sales of land in the area.

Perth property developer John Lawrence Simpson's family company, Burmantofts Pty Ltd, snapped up the land in the green wedge zone at Beveridge on May 7, 2008.

Mr Simpson said he had no knowledge of the freight terminal when he purchased the land and already owned an adjoining 800ha, all of which he jointly farms with Melbourne property developer George Adams.

Mr Adams operates the Adams Group of companies, which is a client of political lobbyist and former Labor Upper House leader David White.

Australian Electoral Commission records show Mr Simpson has donated $85,000 to the Australian Labor Party's West Australian branch, with $45,000 donated in 2007-08 and 2008-09.

There are no AEC records of Mr Simpson making donations to the Liberal or National Parties.

Victorian Greens planning spokesman Greg Barber said he wanted to know who in the state Department of Transport selected the site, the proposed Outer Metropolitan Ring Rd corridor and road servicing the Beveridge properties.

"If you take a look (at the route) you see an on-ramp peels off the proposed outer metro ring road and goes straight into these properties," Mr Barber said.

Just a month after Mr Simpson purchased the property VicRoads issued maps outlining the proposed corridor for the Outer Metropolitan Ring Road that would service the site and adjoining land.

By October that year the Victorian Government had lodged a submission with the Federal Government to fund a $290 million Donnybrook-Beveridge Interstate Freight Terminal servicing the 202ha site and surrounding land.

By May last year the freight terminal had been listed as a "Priority Project" under the Federal Government's Infrastructure Australia fund.

In June 2009, the Victorian Government released its Planning Amendment VC55, which overlaid the freight terminal's "Intermodal and logistics precinct" on Mr Simpson's 202ha properties.

Valuers told The Weekly Times well-serviced industrial land around Melbourne sold for about $1m/ha, once developed, pushing Mr Simpson's $14.5-million investment to more than $200 million.

The potential windfall has drawn criticism over the way the GAIC has been introduced.

Mr Barber has called on the Coalition to support a Greens motion in the Upper House to refer the VC55 amendment to a Select Committee that would examine the selection of the Donnybrook/Epping Freight terminal site.

Mr Simpson said he had donated money to the Labor Party in Western Australia, but said it had nothing to do with what was going on in Victoria.

"We just farm the (Victorian) property," Mr Simpson said.

Finalising the sale before the Government's December 2 GAIC trigger meant the $19.2-million GAIC tax on the property has been fully deferred until the land is developed.

Mr Simpson said while settlement occurred on December 1, the contracts for the sale were signed months before (in May).

A spokeswoman for Planning Minister Justin Madden said the December 2 trigger was based on the sale being legally binding before that date, not necessarily settlement.

As for any information on the GAIC being leaked to the public, the spokeswoman said no minister or staff had advised potential landowners of the introduction of the tax or the trigger date.

Mr Simpson strongly denied he had any knowledge of the proposed freight terminal when he bought the land.

He said his family had simply purchased the property when it came up for sale.

"It (the 202ha) came up and it was offered for sale. We thought it would be right to acquire more land," Mr Simpson said.

When quizzed on the issue this week, Major Projects and Roads Minister Tim Pallas offered The Weekly Times a response that seemed to rule out the Donnybrook/Beveridge Freight terminal.

In a confusing email sent to The Weekly Times on Monday evening, Mr Pallas said that after "detailed discussion with industry stakeholders, a site to the west of Melbourne is seen to be a more appropriate location ... in the short to medium term".

However, the email said despite this detailed discussion with stakeholders:"Given the work required to identify an optimal site for interstate freight, including industry consultation, no specific site has been determined".

Then, just to add to the confusion, Mr Pallas stated: "(However) A northern site could be an appropriate location in the longer term."

The case was referred to West Australian District Court judge Nisbet who said that in regard to all three directors behaviour: "if ever there was a situation redolent of conflict, this was it".