No GAIC liability events
Property transactions and failed events where GAIC does not apply.
Key information
A growth areas infrastructure contribution (GAIC) liability is not imposed on certain events even though the affected land is within the contribution area.
Even if it is a no liability event, a later event may still trigger the GAIC depending on the status of the land at the time, unless an exemption or exclusion applies.
GAIC liability does not arise from certain dutiable transactions, small parcels of land and failed GAIC events.
No liability for dutiable transactions
A GAIC liability is not imposed on a dutiable transaction (land transfer and significant acquisitions) relating to the following affected land:
- Land that is 5 hectares or less.
- Land between 0.41 and 10 hectares that had a house you could live in before 1 July 2010.
- At the time of the transaction and when the land became subject to the GAIC, the land was subject to a registered restrictive covenant or a s173 agreement that either:
- prohibited the subdivision of the land, or
- part limited the use of the land to residential purposes and the building of a single house.
In applying these rules, we consider any conditions on the title to the land. If only part of the land lies within the contribution area, GAIC applies only to that part of the land.
Example 1: Conditions on title
Mr Gruen purchased land wholly within the contribution area. The land was made up of two 7-hectare crown allotments sharing a common single title. As the 2 allotments cannot be sold separately, the total area is 14 hectares.
This transaction is subject to GAIC because it involves land over 5 hectares and does not fall within any of the other no GAIC liability scenarios.
Example 2: Land partially in the contribution area
Mrs Wong purchases a parcel of land 16 hectares in area with no habitable dwelling. Only 2 hectares of the land are within the contribution area for GAIC purposes.
This dutiable transaction is not a GAIC event, as only 2 hectares of the land are within the contribution area.
Land 0.41 hectares or less
GAIC liability is not imposed if affected land is 0.41 hectares or less when the GAIC event occurs, and was one of the following:
- A lot 0.41 hectares or less when it became subject to the GAIC.
- Specified as a lot in a plan of subdivision, authorised by a planning permit granted before the land became subject to GAIC and which had not expired when the statement of compliance was issued, and registration of the plan had taken effect before the GAIC event.
- A lot or part of a lot created by an excluded subdivision of land to separate:
- an existing house on the land from the remainder of the land
- land partly in and out of the contribution area into a lot wholly in and a lot wholly outside of the contribution area.
Failed GAIC events
In some cases, a GAIC event occurs but no liability arises and no GAIC is payable. Those circumstances are where:
- a statement of compliance is issued but the Registrar of Titles does not register a plan of subdivision except where the liable person fails to obtain one of the relevant certificates from us to issue a notice to the Registrar – s22(1)(g) of the Subdivision Act 1988
- an application for a building permit is withdrawn or the relevant building surveyor refuses to issue a building permit except where the liable person fails to produce one of the relevant certificates required for the issue of a building permit – s24(4) of the Building Act 1993
- an instrument intended to give effect to a dutiable transaction failed to give effect to that transaction within the meaning of s260 of the Duties Act 2000.
If GAIC has been paid in these circumstances, you can apply for a refund.