The Labor State Government will proceed with reforming the infrastructure contributions system, following on from work completed by the Standard Development Contributions Advisory Committee that commenced in 2012.  The Planning and Environment Amendment (Infrastructure Contributions) Bill 2015 has been introduced into Parliament and is based on the recommendations of the Advisory Committee.

The new system aims to standardise infrastructure contributions in growth areas and strategic development areas across Victoria, ensuring that basic and essential infrastructure is appropriately funded for growing communities.  In addition to the standard levies, a supplementary levy may be introduced where the standard levy is not sufficient to fund required local infrastructure or unlock growth in a particular region.  A supplementary levy may also be used to fund state infrastructure in growth regions where the Growth Area Infrastructure Contribution does not apply.

In order to apply the infrastructure levies an infrastructure contributions plan must be incorporated into the planning scheme.  The plan will be prepared by a planning authority and will justify the allocation of the development contributions levy to specific areas.

Full details of the new system will be finalised by the Department of Environment, Land, Water and Planning in consultation with an Implementation Reference Group.

We understand that the new system will be introduced early next year.  We hope that the new system will result in a fairer, streamlined infrastructure contributions system.  The current process does not provide certainty to developers, results in lengthy time delays and is costly for both developers and planning authorities.