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About the GAIC 2023 Funding Round
Applications open 22 September 2023
The 2023 Growth Areas Infrastructure Contribution Fund will make available:
- up to $200 million from the Growth Areas Public Transport Fund, and
- up to $200 million from the Building New Communities Fund.
Eligibility
Applications are invited for eligible projects from State and Local Government.
To be eligible for funding, the projects must meet the following criteria:
- Satisfy the requirements set out in section 201VA or 201VB of the Planning and Environment Act 1987, including being located within Melbourne’s UGB and within the municipalities of Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea or Wyndham.
- Nominations must be endorsed by either the state agency head or council CEO.
- Address the state infrastructure demands generated, or expected to be generated, from new communities on land within the Urban Growth Zone.
- Be a project generally in accordance with an approved precinct structure plan, a growth area corridor plan, the state infrastructure delivery pipeline or with an infrastructure planning document or proposal prepared by a state department or agency.
- For a road project, be a declared arterial road under the management of Department of Transport and Planning (DTP).
Key program dates
| Online application portal open | Friday 22 September 2023. |
|---|---|
| Stakeholder engagement | Friday 22 September 2023. |
| Applications close | 12 pm Friday 27 October 2023. |
| Announcements | From December 2023. |
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.
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.
GAIC contribution and funding reporting
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
How funds are allocated
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.
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 |
|---|---|---|
| A (section 201RC(2) of PEAct) | $103,260 | $110,590 |
| B-1 (section 201RC(3) of PEAct) B-2 (section 201RC(4) of PEAct) C (section 201RC(5) of PEAct) | $122,660 | $131,360 |
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.
Developers interested in entering into a WIK agreement should initially contact the VPA.
Two forms are available to assist in developing proposals:
WIK guidelines
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.
Page last updated: 22/09/23