The Allan government is under fire for hoarding hundreds of millions of dollars meant for critical infrastructure in Melbourne’s fast-growing outer suburbs.
Despite collecting over $1.4 billion through the Growth Areas Infrastructure Contribution (GAIC) levy since 2010, more than $230 million remains unspent—leaving local councils struggling to fund essential projects like roads, parks, libraries, and swimming pools.
Melton, one of Victoria’s fastest-growing municipalities, has seen just over 51% of the funds it contributed returned to local projects—the lowest rate among all regions. In contrast, Casey and Cardinia in the southeast have received nearly all the funds collected in their areas.
The GAIC levy is paid by developers when land is rezoned for residential use and is intended to support public infrastructure in growth corridors. However, according to the most recent figures, just 72.4% of the funds had been allocated as of March, leaving a gap of $396 million. A government spokesperson later claimed the gap had shrunk to $234 million but declined to provide updated data.
City of Melton Mayor Steve Abboushi is demanding transparency and a guaranteed share of GAIC funding. He’s calling for the state to match the federal government’s $15 million commitment to the Plumpton Aquatic and Leisure Centre. “As one of the fastest-growing areas in Australia, we need urgent investment in transport, new schools, and community infrastructure,” he said.
Property Council of Australia’s Victorian director Cath Evans echoed those concerns, saying families were moving into new estates without the basic amenities promised to them.
Opposition infrastructure spokesman Richard Riordan accused the government of deliberately stalling GAIC spending to pad the state budget, calling developers “beyond frustrated.”
Local anger is boiling over in Point Cook, where residents are furious at Wyndham Council for redirecting $24 million of developer contributions away from their community, sparking petitions and public backlash.
With record population growth continuing in Melbourne’s outer suburbs, councils and residents are demanding immediate action. The Allan government now faces growing pressure to explain where the money has gone—and when it will be used.
