What is Growth Areas Infrastructure Contribution (GAIC)?

Growth Areas Infrastructure Contribution (GAIC) is an infrastructure contribution paid by developers to contribute funding towards essential state infrastructure in Melbourne’s growth areas. It is a fee collected by the State Revenue Office when land sales and/or subdivision occur. The collected fees are distributed equally between two special purpose accounts: the growth areas transport fund and the building new communities fund.

GAIC funds must be spent in, or for the benefit of, any of the seven designated growth area councils including Hume and Mitchell. Funds are used for infrastructure projects like land acquisition, capital works and start-up operating costs for new public transport services.

Different rates of GAIC apply to different types of land. Land in Merrifield North Precinct is classified as potential Type B-1 land.  Developers can seek to provide works or land for future state infrastructure in lieu of paying the contribution under a GAIC work-in-kind agreement. This can offset all or some of a developer’s GAIC liability.