Where and when the contribution applies and payment options.
Key information
The growth areas infrastructure contribution (GAIC) is a one-off charge on land in Melbourne’s designated growth areas. It is paid by landowners or developers when certain events occur, such as when land is bought, subdivided or applying for a building permit. The contribution helps fund transport, health and education infrastructure in expanding suburbs.
Generally, GAIC does not apply to events involving land under 0.41 ha (4,100 square meters or one acre). GAIC only applies to land in the contribution area, which is growth area land zoned for urban use and development in these municipalities:
- Cardinia
- Casey
- Hume
- Melton
- Mitchell
- Whittlesea
- Wyndham.
If you are buying or own land in a growth area, you can check whether GAIC applies. We issue GAIC certificates at no charge. These certificates show the GAIC status of the land and whether any liability exists.
GAIC events
GAIC applies when the first of one of these events occurs:
- Transfer of land – when ownership changes in a transaction that attracts land transfer duty. This includes contracts of sale, sub-sales and other transfers of title.
- Subdivision – when a statement of compliance (SOC) is issued for a plan of subdivision. Certification of a plan of subdivision under section 35 of the Subdivision Act 1998 (a non-SOC plan) also results in a GAIC liability.
- Building permit application – when a permit is sought to carry out building work on the land and the estimated cost of works is above the set threshold ($1,485,650 for 2025-26).
- Significant acquisition – when someone acquires a major interest in a landholder that owns affected land and the acquisition attracts landholder duty. A landholder can be a private unit trust, private company, wholesale unit trust, public unit trust or listed company with land holdings in Victoria valued at $1 million or more.
GAIC is only payable once, at the first GAIC event after the land becomes part of the contribution area. Subsequent events do not attract GAIC if it has already been paid.
The person who owns the land when a GAIC event occurs is usually liable for the contribution. If the land is sold or transferred, the new owner is liable. For a significant acquisition, both the acquirer and the landholder share the liability.
Exemptions and no-liability events
GAIC does not apply to every event. Some transactions and subdivisions are exempt, excluded or have no liability.
Examples include:
- transfers that are exempt from duty (unless GAIC was triggered by an earlier event)
- transfers of land under 5 hectares, or under 10 hectares if it had a habitable house before July 2010
- events involving land under 0.41 hectares (4,100 square metres or one acre)
- certain small subdivisions.
GAIC exemptions usually postpone liability to a later GAIC event unless another exemption or exclusion applies.
Check detailed rules and how to apply for an exemption.
Rates and calculations
The amount of GAIC depends on the size and type of land. Rates are set per hectare and vary by land type.
For the 2025–26 financial year:
- Type A land: $118,830 per hectare
- Types B-1, B-2 and C land $141,150 per hectare
Example
If you own 12 hectares of type A land and the first GAIC event is a transfer of that land, GAIC would be $1,425,960 (12 × $118,830).
Rates increase annually with the consumer price index. See the GAIC rates, deferred interest rates and building works threshold.
Pay or defer GAIC
There are several ways to manage your GAIC liability:
- pay in full within 3 months of the GAIC event
- defer payment until the next GAIC event if you buy or are transferred land (approval required, interest applies)
- staged payment arrangements aligned with subdivision or development milestones (approval required, interest applies)
- a work-in-kind agreement that provides land or infrastructure works instead of paying cash (approval required).
Affected land will have a GAIC recording on its title until the contribution is fully paid. If you defer payment, the liability remains attached to the land and becomes payable when the next GAIC event occurs, even if ownership changes. The new owner may elect to subsequently defer the GAIC liability.
If GAIC is not paid by the due date, it is a tax default and penalty tax and interest will apply.
Learn more about payment options and applications.
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