We've prepared a development contribution plan (DCP) and will use it to collect levies that contribute to providing essential community infrastructure catering for the increase in residents that developments bring.
In order to introduce a DCP and have it take affect we're looking to amend the Banyule Planning Scheme (the scheme).
This planning scheme amendment includes:
- Introducing the new Development Contribution Plan Overlay Schedule 1 (DCPO1) Provisions at clause 45.06 of the scheme
- Including new overlay maps for the Development Contribution Plan Overlay Schedule 1 (DCPO1)
- Adding the Development Contribution Plan 2016-2017 (the Plan) as an incorporated document at clause 81.01 of the scheme
1 May 2018 update
Following public exhibition and receipt of submissions, on 30 April 2018 Council received a report about the C115 proposal. This report is available from Council’s website as Agenda item 7.1 and Supplementary Agenda item 7.6.
For item 7.1, at the meeting Council solved to:
- Write to the Minister for Planning to request appointment of a Planning Panel for Amendment C115
- Approve the updated DCP Incorporated Document and DCPO1 Schedule that accompany the report, for the purpose of sharing with submitters, Planning Panels Victoria and referencing in Council’s submission to the Panel
- Support on-going discussion with submitters, to help inform Council’s submission and the Expert Witness submission to the Planning Panel.
The updated DCP Incorporated Document DCPO1 Schedule are available from this page, under the heading Post Exhibition Updates.
For item 7.6, at the meeting Council noted that discussions had resulted in two submissions being withdrawn, resulting in 17 submissions. Of these, 13 were unresolved submissions. A list of key issues in these submissions is:
- Concern with introducing more costs/levies
- Support for a revised co-housing exemption
- Transition provisions should be included
- Exemptions should include works by infrastructure authorities
- Specific properties should be excluded
- Wording of the provisions can be improved
- Too much complexity with multiple charge areas.
About development contribution plans
A development contribution plan is a financial management tool to help fund capital works projects servicing the changing profile of the community.
By introducing a DCP, developers will be required to pay two levies. In most instances, the need to pay levies is triggered by a planning permit condition. For smaller developments, like extensions to shops and offices, the need to pay levies can be triggered by a building permit. Levies must be paid before a Statement of Compliance is issued for the subdivision of land or before a building permit is issued.
There are two types of development contribution levies that developers will need to pay:
- The development infrastructure levy helps fund basic infrastructure, such as roads, paths and drains.
- The community infrastructure levy helps fund community facilities, such as neighbourhood houses and sports pavilions.
As Banyule has an established community, only a portion of total project costs can be allocated to a DCP and paid by developers. The balance must be found from other sources through Council’s annual budgeting and four year capital planning.
In 2016 Council developed a strategic framework to consider how it should prepare a DCP.
Using the strategic framework, Victorian Government guidelines, practice notes, ministerial directions and expert advice a draft development contribution plan was prepared.
About planning schemes
Planning schemes are the statutory instrument used to consider applications for changing land use or developing land. These schemes include overarching strategic statements, local policies, zones, overlays and a range of other requirements and guidelines that have to be considered when a change affecting land is proposed.
The Victorian Government provides additional information to help you learn more about the Victorian Planning System.
About planning scheme amendments
Changing a planning scheme involves preparing and progressing a planning scheme amendment. The Planning and Environment Act 1987 defines how amendments need to take place.
The Victorian Government provides additional information about planning scheme amendments.
The changes introduced as part of this amendment will mean we can collect fair and reasonable contributions from developers to help fund development infrastructure (eg. roads) and community infrastructure projects (eg. community facilities).
Altering the scheme maps to include a development contribution plan overlay (DCPO) will:
- help clarify where levies are required if development occurs place and is triggered by a planning permit or building permit.
Adding the Plan as an incorporated document at clause 81.01 of the scheme will:
- help define how collected levies are used.
The following list of questions and answers have been prepared as a quick reference. A C115 fact sheet has been prepared with all the questions and answers if you'd like to print off a copy.
Looking for more? The development contribution plan has all the details.
- What is a Development Contribution Plan?
- Is there more than one levy?
- How are the levies calculated?
- Can developers pay the levy in any other way?
- Does Council make a contribution?
- When does Council provide the infrastructure funded by the levy?
- Do land developers pay any other levies?
- What is the Banyule Planning Scheme?
- How is a planning scheme changed?
- Why do you need to change the planning scheme to include Banyule’s Development Contribution Plan?
- Are any developments exempt from levies?
- How is a levy different to council rates?
- How did Council prepare this Development Contribution Plan?