95 per cent of GAIC funds committed to projects in Melbourne’s seven growth areas

The Growth Areas Infrastructure Contributions (GAIC) fund is about planning for growth and investing infrastructure funding where it is most needed.

By the end of June 2018, the total cumulative cash receipts received from GAIC reached $393 million, with more than $375 million being allocated to critical infrastructure in the growth areas.

In the 2017-18 financial year, over $246 million was allocated to 25 state and regionally significant infrastructure projects to address priorities for health, education, public transport and other services in Melbourne’s growing outer suburbs. Read more here.

Construction works underway with a sign on some barrier fencing promoting the project.

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. Administered by the Minister for Planning and the Minister for Suburban Development, GAIC is used to fund critical projects in Melbourne’s growth areas.

GAIC 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). More information on GAIC can be found at the SRO website.

How GAIC funds are allocated

A GAIC Policy Statement (PDF, 734.7 KB), (DOCX, 3.3 MB) and 2018-19 Application Guidelines (PDF, 182.4 KB), (DOCX, 88.1 KB) have been prepared to ensure the effective and transparent allocation of GAIC funds to deliver critical infrastructure projects to Melbourne’s growth areas.

The policy statement explains what GAIC is, what is can be spent on, how spending will be prioritised and how funds will be allocated. The Guidelines outline eligibility, the assessment criteria and process for submitting projects for GAIC funding. 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. Projects must be within one of the seven growth councils and within the urban growth boundary.

To ensure coordination of priorities, applications must be authorised by the relevant Minister. Potential projects could include emergency services facilities such as ambulance stations, capital works for state funded public transport infrastructure or acquisition of land for state infrastructure such as schools. Growth Area Councils, developers and other interested parties are invited to propose priorities for infrastructure. Proposals can be directed to the Office for Suburban Development and the Victorian Planning Authority or discussed with the appropriate department or agency for consideration.

Public transport facility under construction.

GAIC projects - what’s happening now

Projects currently being funded by GAIC fund include construction of a new railway station at Toolern, land acquisition for ten ambulance stations and eleven schools, a funding contribution to the Mernda Railway extension and the development of cycling and pedestrian paths at Merri Creek parklands in Hume. See a full list of current and completed GAIC projects.

Frequently asked questions

Is my area eligible for GAIC funding?

State infrastructure projects within the urban growth boundary of Cardinia, Casey, Hume, Melton, Mitchel, 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. Applications for GAIC funding will be received and assessed through an annual process.

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 Megan Taylor on 03 9651 9600 or megan.taylor@vpa.vic.gov.au.

Page last updated: 17/10/2018