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A Growth Areas Infrastructure Contribution (GAIC) liability is not imposed on certain events even though the affected land is within the contribution area.

Although the following events are no liability events, a subsequent event may trigger the GAIC depending on the status of the land at the time, unless an exemption or exclusion applies.

No liability dutiable transaction

A GAIC liability is not imposed in respect of a dutiable transaction (land transfer and significant acquisitions) relating to the following affected land:

  1. Land that is five hectares or less.
  2. Land between 0.41 and 10 hectares and before 1 July 2010 had a house you could live in.
  3. 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 a single house.

In applying these rules, we will consider if there are 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 some type B1 land wholly within the contribution area. The land comprised two 7 hectare crown allotments sharing a common single title. As the two allotments cannot be sold separately, the land is considered to be 14 hectares in area. 

This transaction is subject to GAIC because it involves land over five 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 two hectares of the land are within the  contribution area for GAIC purposes. 

This dutiable transaction is not a GAIC event, as only two hectares of the land are within the contribution area.

Land 0.41 hectares or less

GAIC liability is not imposed in respect of any affected land if it is 0.41 hectares or less when the GAIC event occurs, and was either:

  1. A lot 0.41 hectares or less when it became subject to the GAIC.
  2. 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.
  3. 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 circumstances, even though a GAIC event has occurred, no liability will be taken to have arisen and therefore 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 for any reason other than that 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 for any reason other than that 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, an application for a refund of the overpaid GAIC can be made under the Taxation Administration Act 1997.

Last modified: 11 August 2023
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