Landowner and developer contributions for essential infrastructure development in Melbourne’s growth areas.
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Guide
current
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What is GAIC?
GAIC (growth areas infrastructure contribution) is a fee collected in Melbourne's expanding suburbs to fund infrastructure development.
It is paid when buying or developing a large piece of land.
The fees are collected by the State Revenue Office (SRO) and distributed equally between two special purpose accounts:
The growth areas public transport fund
The building new communities fund.
GAIC was introduced in 2010 in the Planning and Environment Act 1987 Part 9B to respond to the challenges facing residents in the growth areas of Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham. It is managed by the Minister for Planning and the Victorian Treasurer.
2025 Growth Areas Infrastructure Contribution (GAIC) funding round
The 2025 Growth Area Infrastructure Contributions (GAIC) Funding Round opened on 20 December 2024, making available up to $150 million for transport focused infrastructure needs. Applications closed on 28 February 2025.
North-Western growth corridor bus package - $161.96 million
Package 1 - $18,741,941 million
The project will fill service gaps either in off peak frequency, span of hours or days of operation (e.g. where a route doesn't operate on Sundays) for 10 existing bus routes in Melbourne’s northern and western growth areas.
The 10 bus routes operate across Mernda, Craigieburn and Donnybrook in the North, and across Wyndham Vale, Manor Lakes, and connecting Wyndham Vale to Werribee in the West.
Impacted routes:
City of Hume: Routes 390 *, 525, 528, 529, 533, 537. Noting route 390 Mernda – Craigieburn crosses into the City of Whittlesea.
City of Wyndham: Routes 170,180,190,192.
Package 2 - $143,203,000 million
The suite of projects will provide critical bus services to new growth communities by expanding the public transport network coverage to ensure Victoria’s newest communities enjoy equity of access to economic opportunity, health services and education.
Impacted routes:
Wyndham Law Courts – Route 153 service uplift and courts access improvements
Riverwalk and Kings Leigh Estate – Route 441 extension
Melton Package – Scalable Option A (New Bus route – Thornhill Park – Cobblebank Station)
Tarneit West Station Package – New Route 186 (Tarneit Station – Tarneit West Station) and 182 Tarneit West Station access and service uplifts
Rockbank-Tarneit-New Route:140(Rockbank Station-Tarneit Station via Mt Atkinson)
DTP scaled package: Wollert Network Package-New Route 335 (Mystique Estate-Epping Station) and 356,357,358 and 577 reconfiguration and service uplifts
Rockbank, Aintree, Watergardens Station, Caroline Springs Package-Route 444,461,463 and 464 configuration and service uplifts
Beveridge to Craigieburn service uplift (1 hf frequency)
Reprioritisation to keep Budget decision to $100m GAIC funded for 25-26 to 2028-29.
How funds are used
GAIC funds can be used for the purpose of state funded infrastructure projects located within the urban growth boundary of any seven growth area councils.
GAIC funds must be spent in, or for the benefit of, any of the seven designated growth area councils. Funds are used for infrastructure projects like land acquisition, capital works and start-up operating costs for new public transport services.
GAIC funds are distributed to growth corridors broadly in proportion to the amount received over time.
The following project types are priorities for GAIC funds:
Growth areas public transport fund
new railway stations and associated works
new bus interchanges
future transport corridors
bus services for the first five years of operation
associated infrastructure for public transport such as car parking and access
Building new communities fund
primary and secondary government schools and other education facilities
state emergency services facilities including fire stations and ambulance stations
health, community health, wellbeing and family violence prevention facilities
justice facilities including courts and police stations
open space improvements
walking and cycling
regional level sporting and recreational facilities
Where GAIC Funds have been invested
In total, GAIC has provided funding for 152 infrastructure projects across both GAPTF (growth areas public transport fund) and the BNCF (building new communities fund), with a combined investment of $1.20 billion.
GAPTF – 52 projects, combined funding total $571.94 million.
BNCF – 104 projects, combined funding total $630.41 million.
Victorian Government departments (or agencies through the relevant department) can apply for funding to deliver important infrastructure projects that address the needs of growth communities during the annual funding round.
Developers can seek to provide works or land for future state infrastructure in lieu of paying the contribution under a GAIC work-in-kind (WIK) agreement. This can offset all or some of a developer’s GAIC liability.
GAIC rates
The adjusted GAIC contributions are:
Land type
Rate per hectare 2022-23
Rate per hectare 2023-24
Rate per hectare 2024-25
A (section 201RC(2) of PEAct)
$103,260
$110,590
$115,530
B-1 (section 201RC(3) of PEAct) B-2 (section 201RC(4) of PEAct) C (section 201RC(5) of PEAct)
$122,660
$131,360
$137,230
Information about payments, exemptions and GAIC certificates can be found on the SRO website.
WIK agreements
WIK agreements allow developers to provide land and/or capital infrastructure works in a growth area instead of a cash payment.
Two models have been prepared to assist with entering into and negotiating a WIK agreement.
WIK guidelines relate to the establishment and administration of WIK agreements. They explain why the model WIK agreements are drafted the way they are, and how they work.
The guidelines should be read in conjunction with Subdivision 2A of Part 9B of the Planning and Environment Act and the model WIK agreements.
