MP calls for change in tax

GEMBROOK MP Tammy Lobato is calling for Spring Street to make changes to the levying of a proposed land tax.
Ms Lobato wants to see the Growth Areas Infrastructure Charge (GAIC) be paid by developers at the time of development rather than by landowners at the point of sale.
She met with State Treasurer John Lenders last week in a bid to bring about changes to the tax.
Under the proposed scheme, properties brought into the Urban Growth Boundary (UBG) in 2005 would be subject to a levy of $80,000 per hectare, while those included in 2009 or after would be charged $95,000 a hectare.
The State Government is introducing the tax to “reflect” the potential of land to be developed in the future, and funds generated from it will contribute part of the cost of providing infrastructure and services in growth areas.
Ms Lobato said many constituents had expressed concerns about the proposed charge since, particularly about the levying of it.
“My representations to the Ministers have been to advocate for the charge to be paid by developers at the time of land development rather than by owners at the point of sale. That is what my constituents want,” she said.
Ms Lobato said she strongly supported the State Government’s commitment to provide timely infrastructure for new areas of development, but had reservations about any scheme which had the potential to be inequitable.
“A further concern is that the tax is set at a fixed sum per hectare regardless of the sale price achieved for a property,” Ms Lobato said.
“Residents have informed me that the dramatic price rises in land values which were expected to occur have not eventuated, meaning that the GAIC is more of a burden to landowners than may have been intended.”
Ms Lobato said she had raised the matter on several occasions over recent months with both Planning Minister Justin Madden and Premier John Brumby.
“I am keen to ensure that landowners are not disadvantaged by the GAIC proposal,” Ms Lobato said.
Members of Taxed Out, a group formed to rally again-st the proposed tax, have already stated they intend to put up candidates against Labor MPs, including Ms Lobato, at the next State Election.
“When you take people’s life savings, you have no other alternative,” Taxed Out chairman Michael Hocking said.
Ms Lobato said legislation on the GAIC was set to go before State Parliament before the year’s end.