MELBOURNE'S urban growth boundary was expanded by 43,600ha today, clearing the way for the Victorian Government to impose its controversial $95,000a-hectare land tax on the rezoned land.
Anyone who has purchased land within the new boundary since December 2, 2008, will be required to immediately pay 30 per cent of the $95,000 a-hectare Growth Areas Infrastructure Contribution, with the remainder indexed to CPI and paid in stages as the land is subdivided for development.
Anyone who purchases property ranging from 0.4ha to 10ha will still be liable for the tax if they subdivide or develop the land.
The Coalition joined the Government in supporting the passage of the VC68 Planning Ammendment through the Parliament's Upper House, while the Greens voted against it.
Planning Minister Justin Madden said the GAIC would help fund infrastructure, particularly public transport, in the expanded growth area.
"We are taking the responsible action of releasing more land for housing alongside a clear plan to fund the basic services and infrastructure for people who move into these areas,'' Mr Madden said.
