“We congratulate the Government and the Opposition for supporting the GAIC model we called for,” Victorian Executive Director, Jennifer Cunich said.
The Property Council led the lobbying for this model agreement with the Government.
“The new GAIC model will improve housing affordability and ensure land supply is secured,” Ms Cunich said.
The Property Council’s model agreement with the Government, where 30 percent of the GAIC is paid upfront and 70 percent will be paid in stages as the development progresses, has received bi-partisan support via this dispute resolution process in the Parliament.
“We congratulate the Disputes Resolution Committee of the Parliament for its constructive work on this sensitive issue and applaud the Opposition for its support,” Ms Cunich said.
“We made it clear that an upfront payment of 100 percent of the GAIC charge was not acceptable to the industry, and worked extensively with the Government to deliver an outcome that can be supported by the industry,” said Ms Cunich.
“The development industry will pay the GAIC.”
“This bi-partisan support shows that Victoria is serious about moving ahead.”
This model will ensure the impact of the GAIC on the end product, the family home, will be dealt with during the development cycle when the risk can be better managed by the developer.
The agreed model, by the development industry and the Government, also includes a commitment by the Government to speed up the delivery of Precinct Structure Plans (PSP), a process that has plagued development in growth areas.
“The commitment to speed up the PSP process will deliver greater certainty to developers because they will have a clearer understanding of the infrastructure needs of communities. This is fundamental when the industry is paying the GAIC to
deliver part of this infrastructure commitment,” Ms Cunich said.
“Speeding up the process will speed up the supply of land, reaping benefits for both consumers and developers.”
Contact: Peter Monaghan: 0412 164 405 or 9650 8300.
