From 1 July 2015, developers, local government and home buyers will have greater certainty upfront about what infrastructure can be funded by development contributions.
State Government reforms seek to reduce the time and cost of processes through the introduction of new Infrastructure Contribution Plans (ICP). These will be prepared during the strategic planning stage in priority growth locations across Metropolitan Melbourne and regional Victoria.
These ICPs will be accompanied by a streamlined approvals process ensuring new communities have access to essential infrastructure including roads, parks and sport facilities, defined in an ‘allowable items’ list.
The plans will also identify whether a standard levy is applicable in two development settings:
Strategic Development Areas: Sites or defined areas that provide valuable development opportunities located close to public transport and other infrastructure. The standard levy in these areas has been set at the following (2012 levels) as –
Greenfield Growth Areas: Land which is in, or planned to be included in, or is appropriate to be included in the Urban Growth Zone. The standard levy in these areas has been set at the following (2012 levels) as –
Other major infrastructure items, including bridges and drainage, that are not funded by the standard levy may be funded (in part) by a supplementary levy where Growth Areas Infrastructure Contributions are not used.
Please contact Master Builders’ Policy Unit on (03) 9411 4531 for further information.
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