Open space contributions are payments made to Council when land is subdivided to create one or more additional separately disposable parcel(s) of land. The funds collected are used to either provide new open space or improve existing open space. Land contributions can also be made where appropriate.

Open space contributions are calculated as a percentage of the land value being subdivided.

The contributions are collected at the time of subdivision and implemented under section 18 of the Subdivision Act 1988, which allows for a contribution rate to be set in the relevant planning scheme, or if no rate is set in the planning scheme, it allows for a contribution to be determined on a case-by-case basis according to set criteria.

The Banyule Planning Scheme currently specifies an open space contribution rate of 5% of the value of the land for a subdivision that creates more than one additional separately disposable parcel of land.

Access to open spaces is important for the health, wellbeing and cohesion of communities.

As our population grows, the need for accessible and high-quality open space also grows and the current contribution rates are not adequate to meet the needs of the future population.

Currently, for subdivisions that create additional lots, the Banyule Planning Scheme specifies a contribution of 5%, however there is a provision in the planning scheme that allows Councils, subject to State Government approval, to set a higher contribution rate. It is time to review the contribution rate to ensure it is in line with the changing needs of Banyule’s population.

The open space contribution is payable at the time of subdivision.

If your development is subdivided before the approval of Amendment C177bany, you will be required to make an open space contribution according to the existing rates.

If your development is subdivided after approval of Amendment C177bany and involves the creation of additional lots, you would be required to contribute X%, instead of the 5% currently set at Clause 53.01 of the Banyule Planning Scheme.

The maximum contribution rate that can be required under s18 of the Subdivision Act 1988 is 5%, which is at the lower end of rates set in planning schemes across Melbourne.

While there may be short-term impacts on some projects that propose additional lots, these are expected to be modest. Our analysis shows that the housing market would adjust to an increase in contributions and would not translate into an increase in the market price of housing in the long term. Effectively, contributions would be factored into the costs of development and the price developers are willing to pay for the land in the first place.

The money will be used to upgrade existing public spaces and purchase new public open space.

Under the provisions of Section 20 of the Subdivision Act 1988, Council is required to use contributions received to buy land for the use as public open space or to improve land already set aside for public open space.

Amendment C177bany proposes removal of the existing public open space contribution rate of 5% for subdivisions that create additional lots. For these subdivisions a rate of X% would be applied when a permit is issued, subject to approval of the amendment by the Minister.

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Section 18 of the Subdivision Act 1988 sets out the following criteria for determining the requirement for a public open space contribution:

• The existing and proposed use or development of the land;
• Any likelihood that existing open space will be more intensively used after than before the subdivision;
• Any existing or likely population density in the area of the subdivision and the impact of the subdivision on this;
• Whether there are existing places of public resort or recreation in the neighbourhood of the subdivision, and the adequacy of these;
• How much of the land in the subdivision is likely to be used for places of resort and recreation for lot owners;
• Any policies of Council concerning the provision of places of public resort and recreation.

Council’s Public Open Space Plan sets the strategic direction for public open space within Banyule and highlights the need for equitable access for all residents.