Tax down

By Melissa Grant and Bridget Brady
A CONTROVERSIAL land tax will still hit property owners in the hip pocket despite plans to levy buyers rather than sellers, according to a lobby group.
Taxed Out chairman Michael Hocking has dismissed changes to the Growth Areas Infrastructure Charge (GAIC) scheme, as announced by the State Government on Friday, as government spin.
Planning Minister Justin Madden said charging the buyer, rather than the seller, was the “fairest way” to help pay for the infrastructure required for Melbourne’s newest suburbs.
However Mr Hocking disagreed, saying that levying buyers would see property prices dwindle.
“It hasn’t altered any issues for landowners,” he said.
“It effectively means there is a debt on the property.”
Under the scheme, those buying properties included in the Urban Growth Boundary in or after 2009 will be subject to a $95,000 per hectare levy. This could include properties in the Clyde investigation area. Properties brought into the boundary in 2005 will attract a charge of $80,000 per hectare for buyers.
Clyde Jersey breeder Winsome Anderson said she was relieved to hear news of changes to the “dreadful vendor tax”.
The 73-year-old widow said the previously proposed GAIC had thrown her freedom of choice out the window as she would have been faced with a bill of $2.5 million for her 26-hectare farm if she sold up.
She said it ruined plans for her twilight years and left her with no option but to farm on.
“It was taking away my freedom of choice to retire when I wanted to retire.”
“To me, it’s not an option to transfer my property to a single family member. I have more than one family member and I would not transfer a debt of $2.5 million to any member of my family.”
Mrs Anderson said some questions still remained, including what the value of her property now was.
Mr Hocking said it was easy for affected landowners to get excited about the changes to the tax, but warned the devil was in the detail.
“Over the next couple of weeks we will inform residents on where they stand in relation to the changes,” he said.
“On face value the government has put so much spin on it.”
Taxed Out members are planning to target many Labor MPs at the next state election, including Gembrook MP Tammy Lobato.
“Tammy and Jude Perera (Cranbourne MP) can expect a lot of mail from us,” he said.
“Those politicians who came out two weeks ago saying they support landowners, it would seem that was a political stunt.”
Ms Lobato said she was pleased Spring Street had made the developer – not the landowner – liable for the charge.
“This reversal delivers a fairer outcome so that the GAIC will apply to those who reap profits from land development and will not be imposed on ordinary families and landowners,” she said.
“It is important to get the GAIC right, and these changes deliver a fair outcome while still ensuring that vital infrastructure like roads and schools can still be built in a timely fashion.”
The draft legislation is available for public comment until November 2 at 5pm.