By Jamie Salter
The Victorian Government is applying a new tax increase on housing sites across the Casey-Cardinia growth corridor from Friday 1 July.
The Minister for Planning approved and gazetted the adjusted Growth Areas Infrastructure Contribution (GAIC) on Tuesday 31 May.
Type A land will increase by $3240 per hectare and Type B and C land will increase by $3850 per hectare.
The tax increase applies to growth area land zoned for urban use and development in Casey and Cardinia shires such as new housing estates.
Shadow Treasurer David Davis MP said the new layer of cost would make housing less affordable for young families.
Mr Davis said the increased charges would continue to push up the cost of housing for families in Melbourne’s growth areas. Generally, the GAIC does not apply to land under 4,100 square metres (one acre).
Measures are available to help developers with payment of their GAIC assessment including staged payments and deferrals.
The GAIC is adjusted each year, ordinarily in line with the Consumer Price Index (CPI).
“Every dollar of the Contribution is spent on providing infrastructure for growing communities – such as schools and ambulance facilities,” a Victorian Government spokesperson said.
