Standard Development Contributions Advisory Committee VPELA - 14 March 2013 Kathy Mitchell, Chair

Appointed on 11 September 2012 Committee Members: Kathy Mitchell (Chair) Trevor McCullough Rodger Eade Chris DeSilva Bryce Moore Assisted by Jessica Cutting and Andrew Natoli. The Advisory Committee

Consultation and Report Process Stage 1 Stakeholder meetings late 2012 with over 35 meetings with 100 participants 58 written submissions Report 1 Setting the Framework (submitted to the Minister 17 December 2012) Released by the Minister 26 January 2013 Stage 2 Submissions due 12 March 2013 Industry and Council forums in February/March 2013 Stakeholder Meetings February and March 2013, including recent visits to key stakeholders in NSW and Qld Report 2 Setting the Levies due 31 May 2013 to the Minister for Planning Report 2 Setting the Levies due 31 May 2013 to the Minister for Planning

Simplicity and certainty. Ease of introduction and adaptation. Flexibility for users. Transparency. Demonstrating Need, Equity, Nexus and Accountability. Standards and adequate funding for ‘starter’ infrastructure. Key Challenges

Contribution not full cost recovery. Key Principle

Proposed Development Settings Growth Areas Land in Metro Melbourne within the UGB Non-metro growth areas in Regional Cities UGZ to apply Urban Areas Existing or planned urban areas in a city, town or settlement Strategic Development Areas Key sites or areas Significant development or redevelopment is proposed

Strategic Development Areas Large Scale Large Development Sites such as Fishermans Bend, AMCOR, Moonee Valley Racecourse Small Scale Small Development Sites such as Brownfield sites, urban growth areas not large enough to be zoned UGZ, land identified for significant (re)development

Proposed Development Levies A Standard Levy is fixed, and will be applied as the default levy. Standard levies will vary for different development settings. A Development Levy Scheme (DLS) is a levy which is customised to a specific precinct or planning unit.

Proposed Development Levies Growth Areas Standard Levy (per hectare) Development Levy Scheme (DLS) (per hectare) Urban Areas Standard Levy (per dwelling) DLS N/A for all Urban Areas Strategic Development Areas Standard Levy(s) (per dwelling) DLS for Large SDAs (per dwelling) DLS N/A for Small SDAs

Default levy for all development. Can apply to all development settings. Will apply for residential, commercial and industrial development settings. Councils may be able to choose to opt in - opt out – whole or in part. Charge area can be whole of municipality or distinctive parts. Implementation through a fast track process Standard Levies

Development Levy Scheme Fixed Community and Recreation Variable Transport, Drainage* and Land Development Levy Scheme (DLS) Comprises fixed and limited variable components. Requires more detailed work than a Standard Levy (e.g. PSP). Needs to be justified and incorporated into the Planning Scheme. * Outside Metropolitan Melbourne

DLS is not a DCP To be tailored and applied for exceptional circumstances. Scope limited to ‘Allowable Items’. Provides parameters and design benchmarks around variable items. Will require clear justification for application. Reviewing whether this should be capped. Can only be applied in Growth Areas or ‘large’ Strategic Development Areas.

Allowable items ‘Allowable items’ replaces the concept of ‘basic and essential’. Lists of allowable items are proposed by the Committee for each development setting. Defines items that may be funded from development levies.

Key Issues for Stage 2 1.Create a Standard Levy system for residential and non residential uses 2.Finalise the list of ‘Allowable Items’ 3.Create a Development Levy Scheme 4.Fix charges for infrastructure categories

Further Issues for Stage 2 Incentives to use Standard Levies Streamlined decision making mechanisms to increase certainty and reduce delays. Apportionment for higher order infrastructure. Works in Kind to be permitted through the use of permit conditions and Section 173 agreements. Levies to apply for non residential development Clear accountabilities for expenditure of funds within clear timelines by Councils. Transition arrangements and implementation.