Transcript Development Contribution Reform: Implementing Standard Levies Municipal Association of Victoria 23 May 2014 Christine Wyatt Deputy Secretary, Planning Department of Transport, Planning and Local Infrastructure Christine Wyatt De.

Development
Contribution Reform:
Implementing Standard Levies
Municipal Association of Victoria
23 May 2014
Christine Wyatt
Deputy Secretary, Planning
Department of Transport, Planning and
Local Infrastructure
Christine Wyatt
De
Development Contribution Reform:
Implementing Standard Levies
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Development Contribution Reform:
Implementing Standard Levies
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Development Contribution Reform:
Implementing Standard Levies
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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Development Contribution Reform:
Implementing Standard Levies
• Biggest reform since introduction in 1990s
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Development Contribution Reform:
Implementing Standard Levies
May 2012
‘A New Victorian Local Development Contributions System –
A Preferred Way Forward.’
September 2012
Appointment 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 2014
Establishment of standard levies and Infrastructure
Contribution Plans to be available from 1 July 2015.
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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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Development Contributions Reform:
Implementing Standard Levies
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Development Contributions Reform:
Implementing Standard Levies
Key concepts
• Two development settings
o Strategic Development Areas
o 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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Development Contributions Reform:
Implementing Standard Levies
Standard Levy
Supplementary
Levy
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• Basic and essential infrastructure
• Contribution to infrastructure
• Selected from defined ‘Allowable Items’
• Exceptional infrastructure items:
- Meet shortfall that can not be funded
through Standard Levy
- Required to unlock the growth
opportunity of the site
Development Contribution Reform:
Implementing Standard Levies
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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Development Contributions Reform:
Implementing Standard Levies
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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Development Contribution Reform:
Implementing Standard Levies
Standard Levy - Strategic Development Area (@ 2012 values)
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Metropolitan
Residential
$4,500 per dwelling
Retail
$46 per square metre, Gross Floor
Areas
Commercial and Industrial
$16 per square metre, Gross Floor Area
Non-Metropolitan
Residential
$3,600 per dwelling
Retail
$36 per square metre, Gross Floor Area
Commercial and Industrial
$13 per square metre, Gross Floor Area
Development Contributions Reform:
Implementing Standard Levies
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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Development Contributions Reform:
Implementing Standard Levies
Standard Levy – Greenfield Growth Area (@ 2012 values)
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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
Development Contribution Reform:
Implementing Standard Levies
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Development
Contribution Plan
• Existing mechanism
• Can continue to be used for full cost
apportionment
Infrastructure
Contribution Plan
• NEW tool for priority growth locations
• To be applied in Strategic Development
Areas and Greenfield Growth Areas
• Streamlined approval and preparation
Development Contribution Reform:
Implementing Standard Levies
How is an Infrastructure Contribution Plan prepared?
Strategic
Framework
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Development Contribution Reform:
Implementing Standard Levies
How is an Infrastructure Contribution Plan prepared?
Strategic
Framework
ICP
Preparation
Infrastructure
Standing Advisory
Committee
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Development Contribution Reform:
Implementing Standard Levies
How is an Infrastructure Contribution Plan prepared?
Strategic
Framework
ICP
Preparation
Infrastructure
Standing Advisory
Committee
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ICP
Approval
Development Contribution Reform:
Implementing Standard Levies
Implementation Package
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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
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Development Contribution Reform:
Implementing Standard Levies
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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