LANDHOLDERS have welcomed a Victorian Coalition commitment to reform the controversial $95,000/ha charge on land brought into the urban growth boundary.
Last week, Opposition leader Ted Baillieu said the Coalition was committed to charge all the $95,000/ha Growth Areas Infrastructure Contribution at the end of the planning process.
Under the Victorian Government's GAIC legislation, which was originally supported by the Coalition, anyone who has bought land within the UGB since December 2, 2008, is liable for 30 per cent of the GAIC, with the remainder paid in stages as the land is subdivided for development.
Michael Hocking, chairman of landholder lobby group Taxed Out, said removing the the requirement for the GAIC to be paid upfront would mean it would no longer be linked to the land title and so reduce equity.
"It will also decrease developer holding costs and so result in lower prices for people wanting to buy a home in a growth area," Mr Hocking said.
Coalition planning spokesman Matthew Guy said the Coalition had always opposed the upfront nature of Labor's GAIC.
He said the Coalition had raised concerns about the impact of an upfront tax on housing affordability and on the landholders who would incur GAIC as a factor in the sale price of their land.
The Taxed Out group has waged a relentless campaign against the GAIC, which was first proposed as an upfront charge on anyone selling land brought into the UGB. Landowner concerns stemmed from the fact much of the land recently included in the UGB may not be developed for 20 years.
In other parts of Australia 100 per cent of tax is payable when development approval is granted.
"John Brumby still hasn't met with a single landowner to hear their concerns," Mr Hocking said. "Brumby's arrogance has not gone down well with landowners and Taxed Out will be campaigning against the Brumby Labor Government at the forthcoming state election."
