development contribution reform: implementing standard levies municipal association of victoria 23...

Development Contribution Reform:

Implementing Standard Levies

Municipal Association of Victoria

23 May 2014

Christine Wyatt

De

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Christine WyattDeputy Secretary, Planning

Department of Transport, Planning and Local Infrastructure

Development Contribution Reform: Implementing Standard Levies

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Reform outcomes

•Delivering an effective, transparent and simple mechanism for development contributions in priority growth locations

•Reining in rapidly-escalating costs to homebuyers and assist in maintaining an affordable land supply for Victorian families

•System refocus to deliver ‘basic and essential’ infrastructure supporting growing communities

•Greater certainty to councils and the development industry

•Emphasis on reporting and accountability for contributions collected and infrastructure spend

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5•Biggest reform since introduction in 1990s


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May 2012‘A New Victorian Local Development Contributions System – A Preferred Way Forward.’

September 2012Appointment of the Standard Development Contributions Advisory Committee.

January 2013‘Report 1 – Setting the Framework’ released for public consultation.

May 2013‘Report 2 – Setting the Levies’ submitted to the Minister for Planning.

May 2014Establishment of standard levies and Infrastructure Contribution Plans to be available from 1 July 2015.

Development Contributions Reform: Implementing Standard Levies

Standard Development Contributions Advisory Committee: ‘Report 2: Setting the Levies’

• 36 recommendations

• Standard levies within a new ‘Development Levy System’

• Identified different development settings to apply standard levies

• Recommended a new tool for reflecting in the planning scheme and approval process

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Key concepts

• Two development settingso Strategic Development Areaso Greenfield Growth Areas

• Metropolitan and non-metropolitan areas

• Categories of Land uses – residential, retail, commercial/industrial

• Categories of infrastructure – Allowable items

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• Basic and essential infrastructure• Contribution to infrastructure • Selected from defined ‘Allowable Items’

Standard Levy

• Exceptional infrastructure items: - Meet shortfall that can not be funded through Standard Levy

- Required to unlock the growth opportunity of the site

Supplementary Levy


Allowable items

• Identifying infrastructure items allowed to be included in an Infrastructure Contribution Plan and therefore contributed to by a Standard or Supplementary Levy

• Allowable Items established up front to deliver transparency and certainty

• Clear boundaries around what is to be considered ‘basic and essential’ infrastructure

Includes community facilities, local sporting facilities, parks, public realm improvements, roads

Doesn't include - regional facilities, eg. major sporting facility or regional aquatic centres

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Strategic Development Areas

• Sites or defined areas that provide valuable development opportunities located close to public transport and other infrastructure, in both metropolitan and non-metropolitan areas.

• Generally identified in Plan Melbourne or regional growth plans.

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Standard Levy - Strategic Development Area (@ 2012 values)

Metropolitan Residential $4,500 per dwelling

Retail$46 per square metre, Gross Floor AreasCommercial and Industrial$16 per square metre, Gross Floor Area

Non-Metropolitan Residential$3,600 per dwelling

Retail$36 per square metre, Gross Floor AreaCommercial and Industrial$13 per square metre, Gross Floor Area


Greenfield Growth Areas

• Land in or proposed to be included in the Urban Growth Zone and/or priority growth areas in Regional Victoria

• Providing new opportunities to support growth in Regional Victoria

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Standard Levy – Greenfield Growth Area (@ 2012 values)

Metropolitan Residential $268,000 per Net Developable Hectare

Retail$161,000 per Net Developable Hectare Commercial and Industrial$80,000 per Net Developable Hectare

Non-Metropolitan Residential$210,000 per Net Developable Hectare or $120,000 per Net Developable Hectare (small towns)

Retail$126,000 per Net Developable Hectare Commercial and Industrial$63,000 per Net Developable Hectare


• Existing mechanism• Can continue to be used for full cost

apportionment

Development Contribution Plan

• NEW tool for priority growth locations• To be applied in Strategic Development

Areas and Greenfield Growth Areas • Streamlined approval and preparation

Infrastructure Contribution Plan

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How is an Infrastructure Contribution Plan prepared?

Strategic Framework


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Infrastructure Standing Advisory

Committee

Strategic Framework

ICP Preparation


Committee


Strategic Framework

ICP Preparation

ICP Approval

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Committee


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Implementation Package

• Legislation to amend Planning and Environment Act 1987• Ministerial Direction on the form and content of Infrastructure Contribution Plans• Infrastructure Contribution Overlay, Schedule and supporting Practice Note• Infrastructure Contributions Plan Guidelines• Implementation guidelines – Design guidelines for roads, Works in kind• Terms of Reference and appointment of the Infrastructure Standing Advisory

Committee• Implementation Reference Group

Standard Levies will go live on 1 July 2015


Key questions that have arisen since announcement

• Urban Areas- Why is there no development setting for urban areas?

• Strategic Development Area - What is an SDA? - How will they be applied at the local level?

• Greenfield Growth Areas - non metropolitan- How is a ‘Small Town’ defined?

• Transitions issues- Where planning scheme amendments are underway- Negotiating S.173 Agreements now or waiting for new system

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development contribution reform: implementing standard levies municipal association of victoria 23...

Documents

local infrastructure

new development levy

different development

development industry

s slide

biggest reform

reform outcomes

site supplementary levy