THE Victorian Coalition has rolled over on its previous commitment to block the Government's "unfair'' $95,000/ha tax on on land brought into Melbourne's urban growth boundary.
Last night the Victorian Coalition voted in favour of the tax in Victoria's Upper House.
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The tax will now be liable on sales of land, greater than 10ha, brought into Melbourne's UGB in 2005 as well as the expanded UGB due to be outlined in an amendment due before Parliament within days.
Anyone who has purchased land within the UGB since December 2, 2008, will now be required to immediately pay 30 per cent of the $95,000/ha Growth Areas Infrastructure Contribution, with the remainder paid in stages as the land is subdivided for development.
Landholder group Taxed Out has condemned the Opposition for supporting a fundamentally flawed and unfair tax, after previously promising to block it.
As recently as February 23, Coalition Planning Minister Matthew Guy issued a press release stating: "The Coalition's consistent position has been that any growth areas infrastructure charge should be levied at the end of the planning process".
"The Coalition believes a GAIC should not be levied at the start of the process where it will be added to holding costs, interest payments and land costs which have a much greater detrimental impact on housing affordability.
Mr Guy has argued the Coalition has since gained significant concessions or "wins" from Government on the GAIC legislation, via negotiations in the Disputes Resolution Committee.
The most significant of these concessions was a GAIC tax exemption on residential landholders with less than 10ha, as long as the land was not developed or subdivided as part of the sale.
However the GAIC is still liable, if the land is developed in the future.
Department of Planning officers have told Taxed Out members a notice would still be lodged against the titles of all landholders with more than 0.4ha stating the land was liable for the GAIC if it is developed or subdivided.
Taxed Out members say the Coalition's "win" has been a disaster, leaving 500 rural landholders with more than 10ha to bear the brunt of the tax.
Landholders with 10.1ha would have the tax tied to the sale of their land, while someone on 10ha or less would pay nothing unless the land was developed or subdivided.
Members of the South-eastern branch of the Taxed Out Group have already warned they will campaign against the (Coalition) Liberals in Gembrook, Hastings and Frankston due to its MPs support for the GAIC.
