Land tax limbo



By Michael Esposito
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12th January 2010 11:05:32 AM


Planning Minister Justin Madden told Star it would be difficult to reintroduce the UGB Bill if it is blocked in Parliament in February, as expected. But he did not rule out reintroducing the Bill after the next election.

The Liberals and Greens have opposed the Bill on the issue of the proposed $95,000-per-hectare Growth Areas Infrastructure Contribution land tax (GAIC) on properties within the new boundary, which they say should be charged at the point of development, not the point of sale.

Janette Laffan of lobby group Taxed Out said Mr Madden has been inconsistent with his position on the Urban Growth Boundary, which is causing further anxiety for affected landowners.

Mr Madden told Star he was “committed” to the UGB, but was quoted in The Age last week saying: “We have a range of options to consider and that may even be that we are not in a hurry to move the urban growth boundary.”

Ms Laffan said: “If the Bill is reintroduced after the election, people have still the shadow of the land tax hanging over them.”

“The property market has frozen in Beveridge since the announcement of the GAIC.

“There has been hardly any sales, the market has stalled. Bad luck if you were planning to sell your house and retire.”

Mr Madden said the Opposition had rejected the Bill without offering any alternatives. “The Opposition are playing politics with housing affordability,” he said.

“We understand the Opposition is likely to vote the Bill down, but they have not suggested any changes or amendments to the Bill.

“At the moment, for the Opposition to vote down the Bill and not have any workable solutions, we think it’s hypocritical.

“We remain committed to the GAIC and extending the UGB for the benefit of Victorian families, but we will not extend the UGB without the contribution.

“It would be irresponsible to extend the UGB without the capacity to provide families with the services and infrastructure they need.”

Ms Laffan said Mr Madden’s claims that the Opposition has not put forward any suitable amendments to the Bill were “rubbish”.

“Everyone knows that if the government changed the tax to be charged at the point of development, it would get through.”

“It’s just political point-scoring to say the Opposition is not compromising - it’s untrue.”

“The government is keeping residents in limbo and they’ve already had to deal with this for over 12 months.”

Mitchell Shire Council, which has always held the position that the GAIC should be levied at the point of development, has sought to ease concerns for landowners in Beveridge, which is part of the urban growth boundary.

The Beveridge township is preparing for a significant expansion with 2000 new homes to be built as part of the Mandalay development.

Mayor Bill Melbourne said: “We believe that council is positioned to know what is best for the community and will continue to plan for the township of Beveridge to ensure that Beveridge is able to grow into a sustainable community.”


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