Axe the tax
By Kristy McDonald
1st September 2009 11:05:36 AM
LOCAL lobby group Taxed Out has won the unanimous backing of Mitchell Shire Council in its fight against proposed state land tax legislation.
Cr Bill Melbourne said council had met with the group and heard its concerns about the Growth Areas Infrastructure Contribution and in particular, payment of the tax by the vendor at time of sale.
At last week’s ordinary council meeting, the mayor said that while “I normally don’t speak on or move motions” he believed it was important for council to support residents affected by the GAIC.
“After talking to the people from Taxed Out, I am amazed at the impact (the tax) will have on so many people in the Wallan and Beveridge areas,” Cr Melbourne said.
He moved that council write to State Planning Minister Justin Madden and Premier John Brumby, seeking an amendment to the proposed GAIC legislation.
He further moved that council advise the government that “council strongly opposes the imposition of the GAIC on small to medium landowners who will be materially disadvantaged by the GAIC” and that “Mitchell Shire Council request the Minister for Planning to amend the current proposal and ensure that the GAIC is levied at the point of development of the land”.
Councillors voted unanimously in favour of the motion and spoke in support of the Taxed Out group.
“This is very unfair to landowners who will have the value of their property virtually written off by way of this tax,” Cr Ross Lee said. “The government could still collect this tax from the developer, at the point of development.”
Cr Kelley Stewart raised particular concerns for residents who had approached financial institutions for loans and been knocked back because their only asset – their property – already had a $95,000-per-hectare debt “hanging over it”.
Taxed Out North Division secretary Jeanette Laffan welcomed the council’s decision. “They clearly understand the adverse impact the tax will have on landowners,” she said. “This decision adds to the mounting tide of opposition to the ill-conceived GAIC proposal.”
She said the western division was currently lobbying Wyndham City Council “as they have been sitting on the fence”.
“Melton have voted against (the proposed GAIC) and Hume have raised questions about the fairness of the tax in their GAA submission,” Mrs Laffan said.
Taxed Out’s next public information session for residents will be held at the Woodstock Hall on Thursday 3 September at 7.30pm.
For more information contact Mrs Laffan on 0438 452 641.