Reforms to Local Infrastructure Contributions

Minister for Planning, Matthew Guy announced on 1 May 2014 a new approach to developer contributions. The new system will provide certainty and clarity to developers on what they will be charged to fund local infrastructure and will come into effect from 1 July 2015.

The current Development Contribution Plan will be replaced by an Infrastructure Contribution Plan (ICP). There are two new features of an ICP. There is a Standard Levy and a Supplementary Levy. The Standard Levy will be set at different rates for different classes of land use and is for basic and essential infrastructure. The supplementary levy is for specific allowable items to be used only in exceptional circumstances (i.e where a bridge is needed or where an infrastructure item is needed to unlock development).

More information can be found at the UDIA (Vic) website.

Article date: 6/5/14