Expanded Urban Growth Boundary Clears Way For Melboure Growth

The Dispute Resolution Committee of Parliament has negotiated a bipartisan way forward for funding vital infrastructure in an expanded urban growth boundary, Planning Minister Justin Madden announced today.

Mr Madden said the Dispute Resolution tabled in Parliament provides for the Growth Areas Infrastructure Contribution (GAIC) legislation to be passed with amendments agreed between the Government and the Opposition.
The Resolution enables developers to match payments to cash flow and provides greater protection to the interests of small landowners.
“It is vital for Melbourne’s future housing affordability that the Urban Growth Boundary be extended and revenue secured to build infrastructure and facilities for new communities,” Mr Madden said.
“This is a critical issue for the future of Melbourne and the Government has been willing to make considerable concessions in order to reach this agreement.
“I am pleased that the Opposition have recognised this and worked with us to agree amendments to the GAIC Bill in line with the Government’s discussions with property and development peak bodies.
“With this clear way forward we can now get on with the important job of planning for Melbourne’s future liveability.”
In a significant change, the Government has committed to spending 50 per cent of GAIC revenue on delivering public transport infrastructure in the growth areas through the newly names Growth Areas Public transport Fund.
“This will deliver $1.2 billion for extensions to Melbourne’s public transport network,” Mr Madden said.
“The early delivery of public transport infrastructure and services is critical to the development of liveable, sustainable communities and this change demonstrates our commitment to delivering public transport infrastructure in line with new land supply as part of the Victorian Transport Plan.
“An additional $1.2 billion will be available through Building New Communities Fund for grants to councils and other bodies for development of vital community infrastructure such as health services, libraries and sporting grounds.”
The amendments to the Bill implement the contents of the Memorandum of Understanding signed in March by the Brumby Government, the Property Council of Australia and the Urban Development Institute of Australia, which spelt out how the GAIC could be restructured to make it acceptable to the development industry.
Key amendments to the legislation are:

• Developers will pay 30 per cent of the GAIC liability when they purchase land, with the remaining 70 per cent to be deferred and paid in stages as the land is subdivided;

• The outstanding balance will be indexed at the Consumer Price Index up to the point that a Precinct Structure Plan is gazetted, at which point any amount deferred will accrue interest at the Treasury Corporation of Victoria 10 year bond rate (currently 6.072%);

• Properties between 0.41 hectares and 5 hectares will now be exempt from GAIC on the sale of land unless it is being subdivided or developed; and

• GAIC is not payable on lots of 10 hectares or less (up from 2.03ha) where there is a habitable dwelling until subdivision or development.

“These last two amendments make it clear that any GAIC liability is not triggered on the sale of land, which protects the interests of hobby farmers and people owning lifestyle properties.
“They ensure the contribution is targeted at developers or people acquiring land for development or subdivision
“This should provide peace of mind for thousands of small landholders.”
Mr Madden said the government had sought this compromise to ensure its city-shaping Delivering Melbourne’s Newest Sustainable Communities initiatives, including an expanded Urban Growth Boundary, could be delivered.
The Bill will now go back to both houses of Parliament for the proposed amendments to be agreed and the legislation passed.
Once the Bill has been passed by the Parliament, the Government will re-introduce an amendment to expand Melbourne’s Urban Growth Boundary, and put in place Public Acquisition Overlays for the proposed 15,000 hectare native grasslands reserve, the Regional Rail Link and the Outer Metropolitan Ring / E6 Transport Corridor.

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