Land tax ‘stings’

STATE Government plans to levy a controversial land tax in stages will still sting the average landh
The government yesterday announced plans for more changes to its widely debated Growth Areas Infrastructure Charge (GAIC) that was defeated in Parliament recently.
The changes would see buyers pay 30 per cent of the GAIC tax when they bought the land and the remaining 70 per cent in stages as the land was subdivided.
The State Government plans to introduce the tax to buyers of land in the Urban Growth Boundary (UGB) to cover the costs of vital infrastructure for new communities.
Mr Guy said it was only “fair and reasonable” that the tax was paid at the point of development, and the plans announced yesterday were not the best outcome.
“This suits the big developers but doesn’t suit your average landholder living on the fringe of Melbourne,” Mr Guy said.
Planning Minister Justin Madden said the government had signed a memorandum of understanding with the Property Council of Australia and the Urban Development Institute of Australia that spelt out the details of how the GAIC would be modified for the industry.

Your first stop before buying a home. View the whole picture.