Metropolitan Planning Levy – Building a Better Victoria (State Tax and Other Legislation Amendment) Act 2014 Presentation to Municipal Association of Victoria

Background Metropolitan Planning Levy (MPL): Victorian State Budget 2014 (previous government) Building a Better Victoria (State Tax and Other Legislation Amendment) Act 2014 – Part 6 Enabling Act received Royal Assent on 17 June 2014 MPL provisions came into operation as on 1 July 2015 Planning and Environment Act 1987 (PEAct) amendments and new Division 5A (sections 96O – 96Z) of Part 4

Purpose MPL will raise about $17.1 million annually to support: Department of Environment, Land, Water and Planning – planning functions Metropolitan Planning Authority Plan Melbourne Refresh initiatives Planning system improvements

MPL Provisions PEAct new definitions Commissioner (SRO) consumer price index (CPI) leviable planning permit application (refer 96P) levy certificate (issued under 96T or 96U) metropolitan Melbourne (Schedule 2 & Mitchell (part)) Banyule Darebin Kingston Melton Nillumbik Yarra Bayside Frankston Knox Mitchell (inside UGB*) Port Phillip Yarra Ranges Boroondara Glen Eira Manningham Monash Stonnington Brimbank Greater Dandenong Maribyrnong Moonee Valley Whitehorse Cardinia Hobsons Bay Maroondah Moreland Whittlesea Casey Hume Melbourne Mornington Peninsula Wyndham *urban growth boundary

Leviable planning permit application PEAct Division 5A of Part 4: 96O Imposition of levy – for the privilege of making an application payable by applicant 96P Leviable planning permit application – an application under section 47 or 96A for a permit for development in metropolitan Melbourne if estimated cost exceeds threshold amount of $1 million (2015-16) then CPI adjusted 96Q Amount of levy - $1.30 per $1000 of estimated cost

Levy certificate PEAct Division 5A of Part 4: 96T Levy certificate – issued by the Commissioner (SRO) to include: estimated development cost levy paid statement that whole levy paid date certificate issued date certificate will expire name and address of payee any other appropriate information 96U Revised levy certificate – to correct a 96T certificate error or increase the cost of development prior to application

Metropolitan Melbourne

Development development includes building, subdivision and other works (a) the construction or exterior alteration or exterior decoration of a building; and (b) the demolition or removal of a building or works; and (c) the construction or carrying out of works; and (d) the subdivision or consolidation of land, including buildings or airspace; and (e) the placing or relocation of a building or works on land; and (f) The construction or putting up for display of signs or hoardings development includes building, subdivision and other works

Additions to sections 47, 73 and 96A 47 Applications for permits (1)(ab) if the permit is required to undertake development, state the estimated cost of the development for which the permit is required … (1A) If the application is a leviable planning permit application, the applicant must, at the same time as making the application, give the responsible authority a current levy certificate in respect of the development for which the permit is required that states an estimated cost of the development that is equal to or greater than the estimated cost of the development stated in the application. (1B) If an applicant fails to comply with subsection (1A), the application is void. 73(1A) What is the procedure for the application? (1A) Section 47(1)(ab), (1A) and (1B) do not apply to an application to the responsible authority to amend a permit. 96A Application for permit when amendment requested (aa) if the permit is required to undertake development, state the estimated cost of the development for which the permit is required … (4A) If the application for the permit is a leviable planning permit application, the applicant must, at the same time as making the application, give the planning authority a current levy certificate in respect of the development for which the permit is required that states an estimated cost of the development that is equal to or greater than the estimated cost of the development stated in the application. (4B) If an applicant fails to comply with subsection (4A), the application for the permit is void.

Role - Developer Prepare development documentation Estimate cost of development If leviable obtain levy certificate Submit levy certificate with planning permit application

Role – Commissioner (SRO) Receive and assess levy application for completeness Issue levy certificate for correct amount Receive and assess revised levy application for alleged error in original certificate or increase in cost of development Issue revised levy certificate

Role – Responsible Authority Assess whether planning permit application is leviable (in metro Melb, >$1m, s47 or s96A) Check estimated cost of development for accuracy Check estimated cost of development on levy certificate is equal to or greater than amount on application Check levy certificate is submitted and still valid (90 days expiry) If not prepared to accept estimated cost of development required a revised levy certificate for correct amount Check revised levy certificate (as above)

Planning permit application form (p1)

Planning permit application form (p4)

Current issues (legal advice being sought) Subdivisions – common practice to accept $0 for cost of development? Development cost – minor utility services may be undertaken without a permit? Responsible authority checking of development costs – some variation in checking? Section 54 – requests for further information after application received?