“In an environment where affordability is already deteriorating, such a move would be disastrous for the state’s competitiveness and for future generations of Victorians who will see their housing dream further out of reach.”
The Growth Areas Infrastructure Contribution (GAIC), defeated in the Upper House last night, would have imposed a $95,000 per hectare levy on land in Melbourne’s fringes and pushed up the cost of new homes.
“If implemented it would have slowed housing development in Melbourne’s growth areas, reduced the amount of land available and made many housing projects unviable or uneconomical,” Mr King said.
“Despite numerous flaws with GAIC and widespread industry opposition to the Bill, the Government tried to push on with minor amendments that did not address industry’s concerns, only to see it defeated.”
HIA had called for amendments such as changes to the timing of the payment (so it instead applies at the last stage of the development) and greater transparency about how the $95,000 figure was derived and what the money will be spent on.
“HIA has opposed linking the passing of the GAIC to the proposed Urban Growth Boundary expansion. We are obviously very keen to see the planned expansion proceed to cater for Melbourne’s growing population and housing needs.”