Victorian transmissions lines to rake in $300m in land tax

The VFF wants “every dollar” of the Allan Government’s VNI West and WRL land tax windfall to go back to landholders and their communities.

Victorian Farmers Federation president Brett Hosking says the Allan Government’s land tax windfall from VNI West must go back to affected landholders and their communities.

The Victorian Government will rake in more than $100,000 a year in extra land tax revenue on every kilometre of the Western Renewable Link and VNI West transmission lines built on hundreds of farm properties across the state’s west.

Yet Energy Minister Lily D’Ambrosio has offered farmers annual payments of $8000/km for 25 years, plus a one-off payment from transmission line builders, based on the value of the land under each 70m-wide easement - equal to about $140,000/km on rural land worth $20,000/ha.

AusNet, which owns Victoria’s existing transmission network, will pay the Allan Government $256.8 million in land tax this financial year on its 17,500ha of easements, an average $14,676/ha or $102,000/km of 70m-wide easement.

That tax take is set to reach more than $300m once the 190km WRL and 240km Victorian component of VNI West are built, pulling in another $40m to $50m for the government.

Victorian Farmers Federation president Brett Hosking, whose Quambatook property is to be cut in half by 6.5kms of VNI West transmission line, said “the government should not be taking any of this tax revenue, because they’re forcing this onto us”.

“The state government will be making $650,000 (a year in easement tax) on my property, that’s being forced on me,” he said.

As one of the landholders who doesn’t want VNI West, Mr Hosking said he fully supported others who wanted to lock the gate and refuse the Australian Energy Market Operator subsidiary Transmission Company Victoria access to their land.

But if the government does charge ahead he said “every dollar” of easement land tax it earned should be going back to landholders and their communities along the transmission routes.

Ultimately Mr Hosking said landholders should view compensation through the lens of what they would earn of the land if other infrastructure was built on the easement, such as wind turbines.

Kanya farmer Ben Duxson says he and other landholders will block any attempt to construct VNI West on their properties.

Given landholders hosting wind farms are now being offered $40,000 to $60,000 per turbine, Mr Hosking said farmers forced to host transmission lines should be demanding at least $60,000 per tower or $150,000/km, based on 2.5 towers per km of easement.

“If it was wind turbines you’d also have a choice,” he said. “But given we don’t, landholders should get even more for easements.”

Kanya farmer Ben Duxson, who has the VNI West route passing across his property within 700m of his house and wool shed, said he was not even discussing compensation, as everyone rallied to block the project.

“If they want a fight at the gate, out people are ready,” Mr Duxson said.

A government spokeswoman said “new transmission is vital for securing affordable and reliable renewable energy for Victorians.

“We are providing additional payments ($8000/km) to ensure that we strike a balance between fairly compensating private landholders who host transmission infrastructure and minimising the impacts on Victorians’ power bills.

“We’re also investing in new Community Energy Funds to ensure landholders and the wider community benefit from hosting new renewable energy and transmission infrastructure.”