Growth Areas Infrastructure Contribution (GAIC) Update

On 26 May 2010 the Victorian State Government passed the Growth Areas Infrastructure Contribution (GAIC) Bill.

We refer to our previous update sent on 22 October 2009 for substantive details of the Bill.

The Bill was amended to reflect the Government's Memorandum of Understanding with the Property Council of Australia and the Urban Development Institute of Australia after being put before a Dispute Resolution Committee. The key amendments to the previously considered Bill include:

• 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 CPI index until a Precinct Structure Plan is gazetted for that area at which point any amount deferred will accrue interest at the Treasury Corporation of Victoria 10 year bond rate.