In Planning

Victoria Minister for Planning Matthew Guy

Coalition Reforms GAIC To Improve Housing Affordability

Victor P Taffa

Planning Minister Matthew Guy has moved to improve housing affordability and reduce red tape by introducing a Bill into Parliament that will reform the Growth Areas Infrastructure Charge (GAIC).

Mr. Guy said the introduction of the Planning and Environment (Growth Areas Infrastructure Charge) Bill 2011 would allow for 100 % deferral of the GAIC to the end of the subdivision process, and provide for in-kind work agreements as part or full payment of the GAIC.

All funds raised by the GAIC will be used to provide vital infrastructure and to oversee development in the growth areas of Melbourne. The GAIC is expected to contribute up to 15 % of the cost of providing state infrastructure and services in growth areas and decisions about the use of the revenue will be made as part of the Victorian Coalition Government’s annual budget process.

These reforms will reduce developer holding costs and place downward pressure on housing affordability as well as enabling some infrastructure in growth areas to be brought forward.

“The Victorian Coalition Government is fulfilling its election commitment to move all of the GAIC payment to the statement of compliance time, thus removing Labor’s up-front costs on business which were being passed on to home buyers.” Mr. Guy said.

“The Government has always stated the GAIC should only be paid by those who choose to develop their land, which is why we are delivering this legislation to ensure 100 % of the GAIC is paid at the time of Statement of Compliance.”

“The move to allow in-kind works as a method of paying the GAIC will allow an agreement between the Coalition Government and a developer to fund state infrastructure in a growth area. This may allow some state infrastructure to be brought forward and assist with Labor’s decade of neglect in outer suburban infrastructure.” Mr. Guy said.

Half of the GAIC revenue collected will be spent on building and improving public transport infrastructure and the associated costs, as well as core community infrastructure including:

  • Transport infrastructure (including roads, pedestrian and cycle paths) other than major public transport infrastructure;
  • Community infrastructure including health facilities, education facilities, regional libraries, neighbourhood houses and major recreation facilities;
  • Environmental infrastructure including regional open space, trails and creek protection;
  • Economic infrastructure including providing access to information and technology and infrastructure supporting the development of commerce and industry.

The Government’s GAIC reforms are part of a planning reform agenda that includes urban renewal, streamlining planning processes and bringing forward land supply.


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