THE Liberal-Nationals Coalition has pledged to scrap its agreement with the government for a $2.4billion tax on land sold in growth areas if elected to power in November's state poll.
But incensed residents in Casey-Cardinia's growth corridor are sceptical about the pledge after an opposition backflip last week revived the Growth Areas Infrastructure Contribution of up to $95,000 a hectare.
Officer dairy farmer Graeme Dodson, 79, has deferred his plans to retire and sell his 120-hectare farm because of the GAIC.
Under last week's agreement, buyers of his land would have to pay 30per cent of the owed GAIC upfront – a bill of $3.06million – based on a tax liability of $85,000 a hectare for the land.
The remaining $7.14million would be paid at the point of development.
"If I wanted to sell my land next week, I couldn't get a developer to pay $3million upfront," Mr Dodson said.
He said he had little faith that a Coalition government would scrap the agreement. "If they let it go now, why should we believe they'd change it?
"Once they enshrine the tax, it's unlikely they would do it."
The tax will apply to purchasers of land sold or subdivided in areas soon to be included in the urban growth boundary, such as Devon Meadows and Clyde.
As part of the agreement, properties of 10 hectares and less would be exempt. This means Robyn Early, who lives on seven hectares in Officer, will no longer be affected by the GAIC.
However, she told the Journal she was incensed for the sake of her neighbours that it had been revived.
The opposition voted down the GAIC legislation in February, pledging not to support the tax unless it was payable only at the point of development.
The opposition's planning spokesman Matthew Guy said if elected the Coalition would stand by its original pledge which would apply to all properties in growth areas. "I acknowledge there would be people with more than 10 hectares, and I say to them hang on [to your properties] for seven months."
Mr Guy said the opposition made the agreement because of a need to address the "housing affordability crisis" by expanding the urban growth boundary.
"The exemption will mean about 90per cent of residential landholders [in the growth areas] will no longer have any GAIC [upfront]."
Taxed Out spokesman Michael Hocking, a director of a riding school in Clyde, said the Coalition was unlikely to control Parliament's upper and lower house to make good its pledge.
"I think they have no idea how statements like that affect the market.
"Are people literally not going to put their houses on the market for seven months?
"What's that going to do to housing supply? It'll put the price up."
The government last year proposed the GAIC would be payable upfront by the landholders, not the purchasers.
A spokeswoman for Planning Minister Justin Madden said the new agreement had been negotiated to protect the interests of small landholders while ensuring developers contributed to infrastructure costs in growing areas.
"The government considers this a binding agreement and would seek to complete the rezoning of land before the end of the year."
The agreement, tabled in State Parliament last week, is yet to be voted on in the upper house.
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