Growth Areas Infrastructure Contribution has commenced
The Growth Areas Infrastructure Contribution (GAIC) has been enacted. The GAIC applies to certain land specified as being within Melbourne’s identified growth areas of Casey-Cardinia, Hume, Melton-Caroline Springs, Whittlesea, Wyndham and Mitchell from 2 December 2008. The liability for contribution applies from 1 July 2010.
The contribution is $80,000 per hectare for Type A land and $95,000 for Types B and C land.
Land that makes up the contribution area
- Type A land: land that was brought within the Urban Growth Boundary (UGB) between November 2005 and 31 December 2006 (inclusive) and in an urban development area on or after 2 December 2008
- Type B land: land that was included in the investigation areas and brought within a growth area, a UGB and a Urban Growth Zone (UGZ) on or after 2 December 2008
- Type C land: any land, that is not Type A or B that is brought within a growth area and a UGZ on or after 1 July 2010
Who is liable to pay the GAIC and when is it payable?
The person who is liable to pay the GAIC will depend upon the relevant GAIC event as set out in the following table:
|GAIC event||Person liable to pay the GAIC|
|Dutiable transaction||Transferee for stamp duty purposes|
|Statement of compliance for plan of subdivision||Owner of land immediately after statement issued|
|Application for building permit||Owner of land immediately after application made|
|Sub-sale of dutiable property||Transferee of property (subsequent purchaser)|
|Significant acquisition (in land rich landholder)||Person who makes acquisition and land rich landholder (joint and several liability)|
The time for payment depends upon the relevant GAIC event:
|GAIC Event||Time for payment of GAIC|
|Dutiable transaction||Within 3 months of the date the stamp duty liability arises|
|Statement of compliance for plan of subdivision||Within 3 months of the date the statement is issued|
|Application for building permit||Before the building permit is issued|
Effect on Landowners
Type A Land: The purchaser’s GAIC liability crystallised on 1 July 2010 which means they must either:
- make an election to defer their GAIC liability – 100% can be deferred when the transfer occurred before 1 July 2010; or
- pay the GAIC liability to the State Revenue Office by 30 September 2010.
The relevant election must be made on or before 30 September 2010, or the full GAIC liability becomes payable
Type B Land: The due date for payment of the GAIC liability (and the deadline for making an election to defer part of that liability) will be three months after the last of the following things to occur:
- the land is bought within a growth area;
- the land is bought within an UGB; and
- the land is bought within an Urban Growth Zone (UGZ).
Penalties apply for late payment.
Section 32 Statements
Section 32 Statements for Contracts of Sale in relation to all GAIC land must now include warning statements to potential purchasers as well as copies of GAIC certificates issued by the State Revenue Office.
Click here to view our previous newsletter on this topic.
For further information on these exemptions, please contact one of our Commercial Property lawyers.
Author: Sandra Robinson