If you are liable for GAIC, you can apply for approval of a staged payment arrangement for:
- A subdivision of land,
- An application for a building permit, or
- A GAIC liability deferred following a dutiable transaction, and
- the land is to be subdivided, or
- a building permit application is to be made
Note: You cannot apply for a staged payment arrangement for GAIC triggered by the issue of a statement of compliance for a plan of subdivision, the sole purpose of which is to provide for public purpose land.
How to apply
Although we administer GAIC, you must apply to the Minister for Planning for staged payment approval. You do this by completing and lodging an application form with the Victorian Planning Authority (VPA).
Where the GAIC has been deferred following a significant acquisition, only the landholder should apply for a single staged payment approval.
When should you apply
You can apply before the GAIC event occurs, but you must apply before the GAIC is due.
For subdivisions, you must apply no more than three months after your statement of compliance is issued.
For building permit applications, you must apply before your permit is issued.
If your application is successful, the VPA will provide with you with a notice of staged payment approval. A copy of that notice will also be provided to us and we will issue you with a certificate of staged payment approval. The approval may include conditions.
The VPA will contact you if your application is unsuccessful.
Conditions of approval
A staged payment approval may contain conditions such as:
- That the GAIC is paid in stages,
- An initial minimum up-front payment payment of 30 per cent of the total GAIC liability,
- In the case of a plan of subdivision, each stage will relate to a specified part of the land to be subdivided,
- The specific the amount payable for each stage and its due date,
- A final date for paying all the GAIC, and
- That if you do not pay any stage by its due date, the entire GAIC amount will become payable as if the staged payment approval had never been given
The staged payment approval may contain other conditions.
Interest on staged payments
Interest on a staged payment will apply three months after the issue of a statement of compliance or the making of the building permit.
If your staged payment approval relates to a deferred GAIC liability, interest will apply to the deferred amount from the day the approval is granted.
The interest payable on a staged payment is calculated on a daily basis at the 10-year bond rate.
This rate for each financial year is the average of the daily yields for the 10-year Treasury Corporation of Victoria (TCV) bond for May in the last financial year. For example, the rate to be used for the 2012-13 financial year is the average daily yields for May 2012.
The applicable average TCV 10-year bond rates for the 2016-17 year is 2.2908 per cent. This rate will change to 2.8953 per cent for the 2017-18 year.
Failure to pay
If you fail to make a staged payment by the due date, all unpaid GAIC, including any interest payable, becomes a charge on the land on which the GAIC is imposed.
This charge will only be removed when the GAIC, including any interest payable, is fully paid.
Changes after approval
If the circumstances upon which you were granted staged payment approval change, you need to apply to amend your approval.
You must re-apply if there is an amendment to the sequence of subdivisions, such as the inclusion of an additional stage, amendments to the land area to be released for a given stage, delays to the progress of a stage or you want to vary payment or dates.
You must lodge your amendment application for the staged payment approval with the Minister, through the VPA, at least 10 business days before to the next payment due date under your existing arrangement.
For more information, you should contact the VPA.
Changes in ownership
The staged payment approval will "roll-over" where ownership of the whole of the land on which the GAIC is yet to be discharged is transferred to a subsequent owner as the result of a dutiable transaction. As a result:
- The GAIC liability will be imposed on the subsequent landowner,
- The GAIC liability of the former landowner will be extinguished, and
- The subsequent landowner is taken to have been granted the same staged payment approval subject to the same conditions
You must inform the VPA that there has been a change in ownership within ten days of settlement.
Note: the roll-over of a staged payment approval does not apply to transfers of fractional interests in land or significant acquisitions.