Peak bodies representing 90 per cent of the development and building industries have joined forces in opposing the Victorian government's proposed Bill, enacting a levy on development in Melbourne's growth areas.
The Australian Property Institute, Housing Industry Association, Master Builders Association of Victoria, Property Council of Australia and Urban Development Institute of Australia sent a letter to premier Brumby on 11 November, defining their position as being "fundamentally opposed to the introduction of any new taxes of land and housing developments."
The proposed Planning and Environment Amendment (Growth Areas Infrastructure Contribution) Bill would see the introduction of a levy of $95,000 per hectare, paid up-front.
Amy Guy, executive officer at the Australian Property Group (VIC) told Architecture & Design that the Bill would “impede development”.
“A decline in development will then lead to housing shortages, increases to land prices and then, of course, that's only going to exacerbate the affordability crisis," she said.
The letter to the premier explains that the up-front nature of the payment "with no 'as-of right' ability to defer or stage payments will place a financial burden on developers and builders.
It also states that the industry’s experience of similar taxes in other states proves that land supply will be significantly affected by the GAIC, leading to skyrocketing land prices.
“Our message is that we are opposing the bill as it currently stands,” Guy said.
“Affordability is an issue at the moment and it [the GAIC] is only going to enhance that.”
