The Victorian Government has announced it has chosen a preferred framework for development contribution plans.


Following consultation with industry representatives and stakeholders, Victorian Planning Minister Matthew Guy said his government has formed a new, straight forward and easy-to-understand system.


Mr Guy said the Government would now move to finalise a model of a new standardised levy system based on five infrastructure categories:

  • Community facilities;
  • Open space facilities;
  • Transport infrastructure;
  • Drainage infrastructure; and
  • Public land.


Under the preferred framework a different levy will be set for different development settings such as greenfield development, metropolitan infill development and regional and rural development, as well as a levy for residential and non-residential development.


Mr Guy said an Advisory Committee would be appointed to set the new levy amounts.


"The intention of the new framework is to cut red tape, reduce delays and provide clarity to the delivery of precinct structure plans in Melbourne and in growth areas in rural and regional Victoria," Mr Guy said.


The new levies will contribute to funding new infrastructure, the upgrade or extension of existing infrastructure or replacement of infrastructure that is required to support new communities.


The Advisory Committee will be required to report to the Minister by the end of 2012.