The VFF made a submission to a Victorian Parliamentary inquiry into changes to the Urban Growth Boundary and the introduction of this proposed development tax, the Growth Area Infrastructure Contribution (GAIC).

The Legislative Council’s Outer Suburban/Interface Services and Development Committee have received terms of reference to investigate the impact of the State Government's decision to change the Urban Growth Boundary.

The Committee will also consider the likely affects of the GAIC, a $95,000 per hectare State Government tax imposed on property owners looking to sell their land within the Melbourne Urban Growth Zone.

VFF president Andrew Broad said if the proposal went ahead, farmers would be slapped with a hefty tax bill.

"Any farmer within the new growth zone wanting to sell a hectare of land would be forced to write the government a cheque for almost $100,000," he said.

"This is an appalling and unfair tax, it is poor policy and it must be scrapped.

"If this tax really is about supporting development then it is logical that it should be paid by developers. The fairest way to fund infrastructure in new urban areas is to charge those who are making a profit from the development of the land rather than those who are leaving it."

The VFF’s submission also raised concerns regarding the impact of the expansion of urban areas on agricultural production.