MELBOURNE'S urban growth boundary increased by 43,600ha last week.
The boundary change clears the way for the Victorian Government to impose its controversial $95,000/ha land tax on the rezoned land.
Anyone who has bought more than 10ha within the new boundary since December 2, 2008, will be required to immediately pay 30 per cent of the $95,000/ha Growth Areas Infrastructure Contribution, with the remainder indexed to CPI and paid in stages as the land is subdivided for development.
Anyone who buys 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 to support the passage of the VC68 Planning Amendment through the Parliament's Upper House last week, 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.
But landholder group Taxed Out has already launched a campaign attacking both the Victorian and Federal Labor Governments on the issue.
Taxed Out spokesman Michael Hocking said the group had approached Prime Minister Julia Gillard earlier in the year asking for support on the issue, as it affected her seat of Lalor.
"She said it was a state issue," Mr Hocking said.
"So we'll be at the four pre-polling booths in McEwen calling on people to vote against Labor," Mr Hocking said.
