Transcript Slide 1

Standard Development Contributions
Advisory Committee
VPELA - 14 March 2013
Kathy Mitchell, Chair
The Advisory Committee
Appointed on 11 September 2012
Committee Members:
• Kathy Mitchell (Chair)
• Trevor McCullough
• Rodger Eade
• Chris DeSilva
• Bryce Moore
Assisted by Jessica Cutting and Andrew Natoli.
Consultation and Report Process
Stage 1
Stage 2
• Stakeholder meetings late 2012 with over 35 meetings with 100 participants
• 58 written submissions
• Report 1 Setting the Framework (submitted to the Minister 17 December
2012)
• Released by the Minister 26 January 2013
• Submissions due 12 March 2013
• Industry and Council forums in February/March 2013
• Stakeholder Meetings February and March 2013, including recent visits to
key stakeholders in NSW and Qld
Report 2 Setting the Levies due 31 May 2013
to the Minister for Planning
Key Challenges
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Simplicity and certainty.
Ease of introduction and adaptation.
Flexibility for users.
Transparency.
Demonstrating Need, Equity, Nexus and
Accountability.
• Standards and adequate funding for ‘starter’
infrastructure.
Key Principle
• Contribution not full cost recovery.
Proposed Development Settings
Growth Areas
• Land in Metro
Melbourne
within the UGB
• Non-metro
growth areas in
Regional Cities
• UGZ to apply
Urban Areas
Strategic
Development Areas
• Existing or
planned urban
areas in a city,
town or
settlement
• Key sites or areas
• Significant
development or
redevelopment
is proposed
Large Scale
Strategic
Development
Areas
Large Development Sites such as
Fishermans Bend, AMCOR, Moonee
Valley Racecourse
Small Scale
Small Development Sites such as
Brownfield sites, urban growth areas not
large enough to be zoned UGZ, land
identified for significant (re)development
Proposed Development Levies
A Standard Levy is fixed, and will be applied as
the default levy.
Standard levies will vary for different
development settings.
A Development Levy Scheme (DLS) is a levy
which is customised to a specific precinct or
planning unit.
Proposed Development Levies
Growth Areas
Urban Areas
Standard Levy
Standard Levy
(per hectare)
(per dwelling)
Strategic
Development
Areas
Standard Levy(s)
(per dwelling)
DLS for Large SDAs
(per dwelling)
Development Levy
Scheme (DLS)
(per hectare)
DLS N/A for all
Urban Areas
DLS N/A for Small
SDAs
Standard Levies
• Default levy for all development.
• Can apply to all development settings.
• Will apply for residential, commercial and
industrial development settings.
• Councils may be able to choose to opt in - opt out
– whole or in part.
• Charge area can be whole of municipality or
distinctive parts.
• Implementation through a fast track process
Development Levy Scheme
• Comprises fixed and limited variable components.
• Requires more detailed work than a Standard Levy
(e.g. PSP).
• Needs to be justified and incorporated into the
Planning Scheme.
Fixed
Community
and
Recreation
* Outside Metropolitan Melbourne
Variable
Transport,
Drainage*
and Land
Development
Levy Scheme
(DLS)
DLS is not a DCP
• To be tailored and applied for exceptional
circumstances.
• Scope limited to ‘Allowable Items’.
• Provides parameters and design benchmarks
around variable items.
• Will require clear justification for application.
• Reviewing whether this should be capped.
• Can only be applied in Growth Areas or ‘large’
Strategic Development Areas.
Allowable items
• ‘Allowable items’ replaces the concept of
‘basic and essential’.
• Lists of allowable items are proposed by
the Committee for each development
setting.
• Defines items that may be funded from
development levies.
Key Issues for Stage 2
1. Create a Standard Levy system for
residential and non residential uses
2. Finalise the list of ‘Allowable Items’
3. Create a Development Levy Scheme
4. Fix charges for infrastructure
categories
Further Issues for Stage 2
• Incentives to use Standard Levies
• Streamlined decision making mechanisms to
increase certainty and reduce delays.
• Apportionment for higher order infrastructure.
• Works in Kind to be permitted through the use of
permit conditions and Section 173 agreements.
• Levies to apply for non residential development
• Clear accountabilities for expenditure of funds
within clear timelines by Councils.
• Transition arrangements and implementation.