GAIC is delivering state and regionally significant infrastructure projects that support the needs of Melbourne’s growing communities.

The fund is a contribution that is paid by landowners developing urban communities on growth area land that has been rezoned since 2005. Contributions are collected by the State Revenue Office (SRO) and distributed equally between two special purpose accounts:

  • The Growth Areas Public Transport Fund (GAPTF); and
  • The Building New Communities Fund (BNCF).

The Victorian Government introduced GAIC into the Planning and Environment Act 1987 Part 9B in 2010 to respond to the challenges facing residents in the growth areas of Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham.

GAIC is administered by the Minister for Planning and Treasurer.

2022/23 State Budget

No funding commitments were allocated from the Growth Areas Infrastructure Contribution Fund.

GAIC funded projects

Find out about GAIC funded projects

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

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.

In response to the Victorian Auditor Generals 2020 report Managing Development Contributions, the way GAIC funds are allocated is currently being reviewed.

The GAIC Program administration is overseen by the Planning Group of DELWP. For further information email gaic@delwp.vic.gov.au.

GAIC rates for 2022-23

The adjusted GAIC contributions for 2022-23 are:

Land type Rate per hectare
A
(section 201RC(2) of PEAct)
$103,260
B-1
(section 201RC(3) of PEAct)
B-2
(section 201RC(4) of PEAct)
C
(section 201RC(5) of PEAct)
$122,660

Information about payments, exemptions and GAIC certificates can be found on the SRO website.

More information

A GAIC Policy Statement and Application Guidelines have been prepared to ensure effective and transparent allocation of GAIC funds to deliver critical infrastructure to Melbourne’s Growth areas.

Under Part 9B of the Planning and Environment Act 1987 (the Act), allocations for recommended projects are authorised by the Minister for Planning and, if required, approved by the Treasurer.

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.

Delivering capital infrastructure works (with or without land) in lieu of a cash payment:

Transfer land in lieu of a cash payment:

Developers interested in entering into a WIK agreement should initially contact the VPA. Two forms are available to assist in developing proposals:

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 PEAct and the model WIK agreements.

Is my area eligible for GAIC funding?

State infrastructure projects within the urban growth boundary of Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham are eligible for GAIC funding.

How are GAIC funds spent?

Contributions collected by the State Revenue Office are distributed equally between two special purpose accounts the Growth Areas Public Transport Fund (GAPTF) and the Building New Communities Fund (BNCF). GAIC funds must be spent in and for the benefit of growth areas.

The funds are to be distributed to growth areas in proportion to the amount received from that growth area over time. However, there may be short to medium term variation in allocations depending on individual project priorities and revenue collected.

How do I apply for GAIC funding?

Victorian Government departments or agencies (through the relevant portfolio department) may apply for GAIC funds. Growth Area Councils, developers and other interested parties are invited to propose priorities for infrastructure to be funded from GAIC. All proposals are to be directed to the appropriate department or agency for their consideration.

Can developers deliver Work in Kind projects instead of paying GAIC?

Yes. Developers can seek to provide works or land for the purpose of future state infrastructure in lieu of paying GAIC. Proposals for GAIC Work in Kind (WIK) agreements, including for land, can be directed to the Victorian Planning Authority for assessment and negotiation.

To discuss a GAIC WIK project contact Andrew Churchward on 03 8644 8816 or andrew.churchward@vpa.vic.gov.au.

Page last updated: 31/05/22