The Victorian Government has announced a planned ‘overhaul’ of local development contributions with an eye to streamline infrastructure development and construction.


Development contributions are payments or works provided by developers towards infrastructure such as roads, storm water run-off management systems, open space and community facilities required to meet the future needs of local residents.


"Reforming the existing developer contribution system should substantially reduce the time and cost to prepare a contributions plan and provide greater certainty and transparency through the possible use of pre-determined standard levies," Victorian Planning Minister Matthew Guy said


A new development contributions system will establish:

  • a range of standard schedules for different development settings across Victoria, such as metropolitan growth areas, regional cities, peri-urban areas, urban development areas, and other development settings as needed;
  • consistent and transparent development contributions for different categories of land use;
  • councils with the capacity to tailor local schedules.


The announcement comes as Mr Guy has established a stakeholder reference group to provide advice on the framework of any future system implemented by the government.


The stakeholder reference group will include industry groups such as the Urban Developers Institute of Australia, the Property Council and the Master Builders Association, as well as the Growth Areas Authority, Department of Treasury and Finance, and Department of Premier and Cabinet. Council representative groups have also been invited, such as the Municipal Association of Victoria.


A reformed developer contribution system is expected to be ready for implementation in early 2012.