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Infrastructure Contributions Overhauled

11 June 2015

The Andrews Labor Government has delivered a simpler, fairer development contributions system to provide for infrastructure, particularly in the state’s rapidly-expanding growth areas.

Minister for Planning, Richard Wynne, introduced a Bill to Parliament this week to replace the inefficient contributions system which has been in place since 2005.

Overhauling developer contributions is an important step in simplifying Victoria’s planning system and will give more certainty to property developers and councils.

Developer contributions help to fund roads, parks, sports and community facilities. A more efficient system means faster development approvals and less red tape.

The existing contributions system, in place for the past 20 years, had become a barrier for urban development in Victoria.

These reforms, shaped through extensive consultation, have been long called for by local government as well as the planning and development industries.

Further details around levy rates and indexation mechanisms are under discussion with councils and the broader property industry. The Department of Environment, Land, Water and Planning will work with an Implementation Reference Group to finalise these details before the new system starts.

The new system will come into operation in early 2016.

Quotes attributable to Minister for Planning, Richard Wynne

“As our cities grow, development contributions will help fund essential infrastructure. But the system was unclear, lacked transparency and was an unnecessary burden.”

“The Andrews Labor Government is cutting planning red tape to encourage growth and develop sustainable, vibrant communities.”

Reviewed 19 August 2020

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