Quick answer
GAIC has gone up for the 2026-27 financial year. If your land is Type A, you now pay $122,260 for every hectare. If it’s Type B‑1, B‑2 or Type C, you now pay $145,220 for every hectare.
Both figures rose by about 2.9% from last year. If you’re buying, subdividing, or getting a building permit on land in one of Melbourne’s seven growth suburbs, this can affect what you pay at settlement, so it’s worth checking before you sign anything.
What is GAIC, in plain terms?
Growth Areas Infrastructure Contribution (GAIC): a one-off charge on land in Melbourne’s growth areas. You pay it once, when the land is bought, subdivided, or built on. The money helps pay for new roads, schools and hospitals in these growing suburbs. Once it’s been paid on a block of land, it’s never charged again on that same block.
The Victorian Government introduced GAIC in 2010, under Part 9B of the Planning and Environment Act 1987. The idea was simple: as new suburbs grow, they need new schools, roads and services, and GAIC helps pay for that. The Minister for Planning and the Victorian Treasurer oversee it, and the State Revenue Office (SRO) runs it day to day.
People often mix up GAIC with stamp duty, but they’re two different charges. Stamp duty applies to almost every property sale in Victoria and is worked out from the sale price. GAIC is different; it only applies to certain growth-area land, it’s charged per hectare rather than on price, and it’s only ever paid once. If you’d like the full picture on what stamp duty involves, our guide to stamp duty in Victoria covers that separately.
Because the two charges are easy to confuse, most conveyancing firms in Melbourne VIC, including ours, check both stamp duty and GAIC status together as part of every property purchase.
The 2026-27 GAIC rates
GAIC is charged per hectare of land, and how much you pay depends on your land’s “type”. The rate is reviewed every financial year, so the dollar figure moves a little even when the rules themselves stay the same. Here’s what applies right now:
Land type | Rate per hectare |
Type A land | $122,260 |
Type B‑1 & B‑2 land | $145,220 |
Type C land | $145,220 |
Source: State Revenue Office of Victoria, Growth areas infrastructure contribution — current rates, updated 21 July 2026.
5.6063%
Yearly interest if you delay paying GAIC
$1,528,532
Building work under this amount doesn't trigger GAIC
0.41 ha
Land smaller than this is usually GAIC-free
Why did the rate go up again?
GAIC isn't a number the government sets once and forgets. It's reviewed every financial year, which is why the per-hectare charge tends to creep up most years instead of staying flat. The chart below shows how both land-type rates have moved over the last three years.
GAIC rate per hectare, 2024-25 to 2026-27
Why this matters
Because GAIC changes every financial year, two people buying the exact same block of land, one in June, one in July, could end up paying a different amount. Timing and land type both affect the final number.
Which Melbourne growth corridors are affected?
Wyndham
Truganina, Tarneit, Point Cook, Werribee
Melton
Caroline Springs, Melton, Fraser Rise
Hume
Whittlesea
Mitchell
Casey
Cardinia
Not sure which land type applies to your block?
Send us the address. We’ll check the GAIC status and land type before you commit to anything.
When does GAIC actually apply?
Transfer of land
Usually when a purchase settles, and ownership changes hands.
Subdivision
When the block is officially split into a plan of subdivision.
Building permit application
When the estimated building cost is above the yearly threshold.
Significant acquisition
Buying a major stake in a company or trust that holds the land.
GAIC is a one-off charge: once it’s been paid on a block, later events on that same land don’t trigger it again. Blocks under roughly 0.41 hectares are generally excluded, and eligible landowners can apply to defer payment or offer works instead of paying cash upfront. The “significant acquisition” trigger is where GAIC due diligence overlaps with commercial conveyancing in Melbourne. Developers buying into a landholding company or trust need this checked just as carefully as a straightforward land purchase.
What this means if you're buying in a growth corridor
If you’re buying an established house and land package, GAIC has usually already been paid by the developer earlier in the land’s life. But that’s something to confirm, not assume. Before you sign, make sure these are checked:
- The Section 32 (Vendor's Statement) discloses the current GAIC status of the land.
- A current GAIC certificate exists, particularly for larger acreage or rural-residential lots.
- Off-the-plan or house-and-land contracts clarify GAIC treatment before subdivision occurs.
- Any development or building-permit potential above the exclusion threshold is priced in.
If GAIC hasn’t been paid or hasn’t been certified correctly, it may remain as a charge on the land, another reason to confirm the status before you’re locked in. This is exactly why property conveyancing in Melbourne always includes a GAIC check as standard; a licensed conveyancer will confirm the current GAIC certificate before you’re locked into a contract.
General information only. This article explains GAIC rates and how they generally work; it isn’t official, financial or tax advice, and GAIC liability depends on the specific parcel and transaction. Speak with a licensed conveyancer or the State Revenue Office before relying on any figure for a live transaction.
The bottom line
GAIC’s 2.9% rise for 2026-27 is a routine yearly update, not a big policy change. But it still moves real money on any growth-corridor land deal. What you pay depends on your land type, your timing, and whether GAIC has already been triggered on that block before.
For buyers, the simple takeaway is this: don’t assume GAIC has already been sorted. Confirm it, in writing, before you sign.
Eagle Peak Conveyancing is a team of licensed conveyancers based in Melbourne’s western suburbs. We check GAIC, stamp duty and title conditions on every property conveyancing job we take on, whether you’re buying your first home or a development site.
