Photo taken by Mary-Rose Wilson at the rally held Tuesday 14th July, 2009
Is your property zoned as Urban Growth? Are you in an “Urban Growth Boundary (UGB)”? Do you know someone that is? If so, you need to know the facts!
The Brumby Government is pushing to legislate a tax called GAIC - payable by the landowner on the first transaction sale of their property. In Victoria. the tax has previously been paid by the land-developer, as do all other States in Australia.
On 2nd December 2008, the Victorian Government released Melbourne @ 5 million, outlining a planned expansion of the Urban Growth Boundary (UGB) to accommodate Melbourne’s population growth over the next 20 years.
The Government also announced that all land of 0.41 hectares or more (with a few vague exceptions) that is brought into the UGB in or after 2009 will attract the new GAIC tax of $95,000 per hectare; payable on “first property transaction” and therefore upon sale or subdivision.
Noted by Jeanette Leffin (Northern region) “The GAIC is actually indexed against a construction cost index and most of these are currently running at about double of CPI (as high as 6-7%). If you work on 6%, in 10 years the GAIC will be over $170,000 per hectare. Very alarming! Of course, the GAA can’t tell us what the current percentage is or even the exact construction cost index that will be used”.
Land brought into the UGB in 2005 will attract GAIC of $80,000 per hectare.
The Government’s public consultation and communication regarding this proposal was (and continues to be) very poor, but word of its seriousness soon began to spread. A groundswell of opposition grew. Public meetings were held in the various UGB growth areas and as a result TAXED OUT was formed in June 2009.
“TAXED OUT” represents landowners in all areas of the expanded UGB, as well as members of the public who are concerned about the unfairness of the State Government’s planning and taxation policies. TAXED OUT has been formed to fight against this UNFAIR proposal. TAXED OUT is now an incorporated body and is seeking your membership. An application form can be obtained by contacting anyone of the representatives, listed below. A member ship fee of $25.00 will be added to the fighting fund and used to pay for the ongoing operation and expansion of the group via mail-outs, website, flyers, signage and perhaps advertising in the future.
What’s wrong with the GAIC?
- Charged at the “first property transaction’, not at development stage.
- Charged at a flat rate per hectare rather than a percentage of sale price. All other forms of property tax are based on valuation or a % of the sale price. Even your rates are levied on a more equitable basis.
- Charged on the gross land area irrespective of development yield.
- Affects inheritance - applies if a will directs that property be sold and divided by beneficiaries.
- Applies if a marriage breakdown requires the family home be sold.
- Charged on compulsory acquisitions.
- Leads to a massive reduction in equity and borrowing capacity.
- In effect, freezes personal land assets until development is imminent(which could be decades away) but landowners will be hit with immediate rate increases.
- Changes the whole principal of land ownership - an estate in fee simple. The highest form of land ownership in the country means nothing if the value of that property can be eroded through government intervention.
- A precedent will be set if this legislation is passed; moving one step closer to a property exit tax for all landowners.
TAXED OUT’s message to the Brumby Government…
The proposed GAIC is a grossly unfair tax.
Imposing this tax at a flat rate per hectare on the first property transaction places an unfair burden on landowners as it does not take into account differing property values, development potential or the nature of the property transaction.
“TAXED OUT” request that the State Government immediately withdraw the proposed tax in its current form and consults further with affected landowners to create a fairer outcome.
You have probably seen the news this evening on the protest held firstly at the Sun Corp Building in the City of Melbourne. I attended the rally to protest with other landowners against this legislation. Our property; located in the Strathtulloh estate does not fall with the UGB, however, I am fighting alongside all those land-owners who are affected - to stamp out this legislation before it is too late. You see the Government can move the boundary at any time; bringing in your land which will incur the Tax. So I am asking people on behalf of TAXED OUT Inc. to support the fighting fund.
Please contact these representatives for more information:
South Eastern region: Michael Hocking on 0400 248 099
Email: michael@handm.com.au
Northern region: Jeanette Laffan on 0438 452 641
Email: fastflow1@bigpond.com
Western region: Nola Dunn 0421 108 007
Email: deanside@optusent.com.au
A group was formed as a fighting fund - called “Taxed Out”. The Chair of this group is Michael Hocking. He has put out some information to the public www.taxedout.com.au
Thank you
Mary-Rose Wilson
Calson Park Alpacas
