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Land tax changes fail to ease fears

19 Oct, 2009 08:09 AM
A RESIDENTS' lobby group says the State Government's altered plans for a property sales tax in Melbourne's growth areas are a smokescreen.

Under draft legislation announced on Friday, the $95,000-a-hectare growth areas infrastructure charge will be passed on to the buyers of properties in the affected areas of Clyde and Devon Meadows.

The proposed law would allow buyers to defer payment until the land was on-sold, sub-divided or developed.

Originally, the tax was to apply to sellers of the properties, causing outrage and the formation of lobby group Taxed Out.

A spokesman for the group, Michael Hocking, said sellers would still see a reduction in their property's value under the revised tax.

"I don't see anything has changed because it's the same transaction the Government's targeting.

"Under this scenario, small acreage may suffer a loss in market value as there is a liability to the purchaser that must be considered when negotiating the purchase."

Planning Minister Justin Madden said the tax would apply to those profiting from subdividing and developing land brought into the urban growth boundary.

"We believe this is the fairest way to help pay for the infrastructure needed by families who will move to some of Melbourne's newest suburbs."

The draft legislation is available for public comment until 5pm on November 2.

Details: www.dpcd.vic.gov.au/planning

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