Deferral of your GAIC

Key information

You can choose to defer paying a growth areas infrastructure contribution (GAIC) if you become liable due to a dutiable transaction or a significant acquisition in a landholder. You can defer all or part of the payment.

You must lodge your application to defer within 3 months of the GAIC event. The election to defer starts when the liability arises and continues until it is paid or another GAIC event occurs.

Any non-deferred amount must be paid within 3 months or interest and penalty tax may apply.

You must pay deferred GAIC before subdivision or applying for a building permit.

If you do not pay on time, the full GAIC amount:

• becomes immediately payable
• may incur penalty tax
• can be registered as a charge on the land.

Deferred GAIC continues to accrue indexation and/or interest until it is paid. 

If the land is transferred before payment, the deferred liability generally transfers to the new owner.

Due date for deferred liability

The GAIC deferral ends and you must pay the deferred liability on or before the first of the following events:

1. The issuing of a statement of compliance relating to all or any part of the land.
2. The making of a building permit application relating to all or any part of the land.

You can apply for staged payment arrangement before these events. This is subject to approval from the Minister for Planning.

Excluded subdivisions of land or excluded building works do not extinguish the GAIC liability or end the deferral. If an excluded subdivision occurs, the deferred liability is apportioned between the child lots in proportion to their area. 

Indexation and interest

Indexation applies from the time the liability arises until the earlier of the following events:

• The liability is paid by the due date (i.e. before the issuing of a statement of compliance or making a building permit application).
• The land becomes part of a gazetted precinct structure plan.

After that, the indexed deferred liability is subject to interest until it is paid by the due date or approval is given for a staged payment.

The exception is for liabilities incurred in respect of type A land where the dutiable transaction occurs prior to 1 July 2010. In this case, the deferred liability will be indexed until it is paid or approval is given for a staged payment.

Indexation

Deferred GAIC is indexed annually at the end of each financial year after the liability arises. Indexation is based on the Consumer Price Index (all groups index for Melbourne) and continues until the earlier of the following events:

• The deferred liability is paid.
• The land becomes part of a precinct structure plan.
• Approval is given for a staged payment.

Interest

Interest on deferred GAIC is calculated daily at the 10-year bond rate.

This rate is the average of the daily yields for the 10-year Treasury Corporation of Victoria bond for May in the financial year preceding the financial year in which the day occurs.

The applicable average TCV 10-year bond rate for the 2026-27 year is 5.6063%. See the historical GAIC contribution and interest rates. 

Deferred GAIC and subsequent dutiable transactions

If the GAIC has been deferred and a subsequent dutiable transaction occurs before the land is subdivided or developed, the original liable person’s obligation to pay the deferred GAIC is extinguished.

The deferred GAIC liability – together with any indexation and interest (roll-over GAIC) – rolls over to the subsequent transferees:

1. The transferee in the case of a land transfer.
2. The subsequent purchaser registered on title in the case of a sub-sale.
3. All the acquirers and the landholder in the case of a significant acquisition.

If the subsequent dutiable transaction relates to only part of the interest in the land or in a landholder that owns the land:

1. The roll-over liability of the subsequent transferee is proportionate to that interest.
2. The relevant person remains liable to pay or defer the remaining part of the deferred GAIC.

GAIC exemptions do not apply to roll-over GAIC liabilities.

Due date for roll-over GAIC

The subsequent transferee becomes liable to pay the roll-over GAIC from the time the subsequent dutiable transaction occurs.

To avoid a tax default, the subsequent transferee must either pay or elect to defer their liability within 3 months of this date.

Deferring roll-over GAIC 

The subsequent transferee may elect to defer paying the roll-over GAIC by lodging a completed application form within 3 months of the subsequent dutiable transaction. The deferral takes effect from when the liability arises, being the date of the subsequent dutiable transaction.

The GAIC may be deferred and rolled over following each subsequent dutiable transaction. There is no limit to the number of times this can happen. However, the roll-over GAIC continues to be subject to indexation and interest through all subsequent dutiable transactions relating to the land.

On request, we will issue a Certificate of Release to the former owner and a Certificate of Subsequent Deferral to the purchaser.

Public purpose land subdivisions

If land subject to a deferred GAIC liability is subdivided solely to provide land for a public purpose, the issue of the statement of compliance for the lot will trigger a liability to pay GAIC, but only for the public purpose land. The GAIC liability is not imposed on the remaining part of the land and will be triggered at the next GAIC event.

Public purpose land is land specified in a plan of subdivision as a lot, parcel or other area of land for public purpose, such as land provided for transport infrastructure and utility installation, open space and community facilities.

Payment of the GAIC or deferred liability for the public purpose land must be made in full within 3 months of the issue of the statement of compliance for the plan of subdivision. This liability cannot be deferred or discharged under a staged payment arrangement. 

Once the liability is paid, the GAIC recording against the public purpose land will be removed, allowing any public authority that subsequently acquires the land to acquire it free from any GAIC encumbrance.

Default on deferred GAIC

Failing to pay the deferred or roll-over GAIC and any accrued interest by the due date is a tax default under the Taxation Administration Act 1997. Interest and penalty tax may apply.

The deferred GAIC will become immediately payable as if the deferral or subsequent deferral had never been made and interest applies from what would have been the last day for paying the whole GAIC amount. Penalty tax may also apply.

In the case of a subsequent deferral, interest and penalty tax apply to the amount of the roll-over GAIC for which the subsequent transferee becomes liable.

Unpaid deferred GAIC becomes a charge on land

Deferred GAIC – including roll-over GAIC and any applicable interest not paid by the due date – is a charge on the land on which the GAIC is imposed and the Commissioner may register that charge.

The charge is only removed when the outstanding amount is fully paid or the liability to pay the GAIC for that event is extinguished.

Land ceasing to be in a contribution area

If land with a deferred or roll-over GAIC liability attached to it ceases to be in the contribution area within 3 years of the GAIC liability arising from the first dutiable transaction, the liability is extinguished for that land.

If a person has paid a non-deferred GAIC amount for land that ceases to be in the contribution area, they can apply for a refund.