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

2. 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

3. 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

4. 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

5. 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 ( ) then CPI adjusted
96Q Amount of levy - $1.30 per $1000 of estimated cost

6. 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

7. Metropolitan Melbourne

8. 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

9. 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.

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

11. 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

12. 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)

13. Planning permit application form (p1)

14. Planning permit application form (p4)

15. 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?