Buckling under new tax



By Bridie Byrne
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23rd June 2009 11:05:46 AM

Unhappy … Werribee farmers Carmen and Jim are livid about the proposed Growth Areas Infrastructure Contribution that could force them to sell their land. 32385 Picture: BRIDIE BYRNE

WERRIBEE farmers Carmen and Jim might have to sell their home, with the couple fearing they will buckle under the strain of new tax burdens.

With a 5.5ha property, Carmen said she could not afford the price onslaught.

“We have taken out a loan to cover all of this,” she said.

“We are living off bank card after bank card.”

The recent changes to the Urban Growth Boundary hinge on the parliament passing the controversial $95,000 per hectare rezoning tax.

The Growth Areas Infrastructure Contribution first slated in December will only apply to landowners that sell or subdivide their rezoned farming land.

It will be backdated to 2 December last year, leaving some farmers already in debt.

The State Government could reap $2 billion in new tax revenue over the next 20 years from landowners to pay for new services to meet growing demand.

The Opposition has ruled out supporting the GAIC.

Carmen said she was livid with the government.

“How dare they,” she said.

“We are pensioners. Where are we supposed to pull the money from?”

Having worked on the land for 28 years, she only wants a fair price for their property.

“Once we pay all this money we are left with very little,” Carmen said.

Farmer Neil Anderson said it was a clear grab for cash.

“(Planning Minister) Justin Madden has decided we will hit the poor farmer, the bloke that’s battled all his life, the working class guys, these are baby boomers,” he said.

Mr Anderson, who owns 22ha, said he would only walk away with change.

Peter Samartino said he had worked for 50 years to provide for his family.

“They think I got this land as a gift - I’ve worked my guts out for this,” he said.

Planning Minister Justin Madden said property owners would be sitting on a windfall when the land was rezoned. “Let’s make this quite frank, by having their land zoned in the urban growth boundary they will probably get a tenfold uplift in the value of that property,” he said.

But he admitted that rising rates would force some people off their land.

“It will no doubt mean that people will have to consider whether they want to maintain the use of that land in the most effective manner, based on their financial circumstances,” Mr Madden said.


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