Status
On this page:
Where the levy applies
You have to pay the levy if you want to apply for a planning permit to develop land in metropolitan Melbourne where the estimated cost of the development is more than the levy threshold.
The metropolitan planning levy threshold is $1,133,000 ($1,207,000 from 1 July 2023). The threshold is adjusted by the Consumer Price Index on 1 July each year.
If the estimated development cost is more than the threshold, you cannot submit a planning permit application without a current levy certificate.
Estimated cost of development
The levy amount is calculated on the estimated cost of the development for which the planning permit is required. This cost is shown in the planning permit application form, which is also used by the responsible authority to calculate permit application fees.
If your application for a planning permit is to subdivide land, you need to pay the levy if the subdivision involves development works requiring a planning permit and the costs of development exceed the levy threshold. If there are works associated with the subdivision of land that do not require a planning permit, the costs of these works should be excluded from the estimated development costs for levy purposes.
Read more about estimated development costs for land subdivision in Planning Practice Note 82: Applying the Metropolitan Planning Levy.
To read more about the levy go to State Revenue Office.
Paying the levy
The levy must be paid prior to lodging a planning application in a metropolitan council area for a development valued over the threshold.
The levy is set at $1.30 per $1,000 or 0.13% of development value. There is no refund of the levy except where there has been an error in calculating the amount of the levy.
It must be paid to the State Revenue Office (SRO) before applying for a planning permit. The SRO will give you a levy certificate to submit with your planning permit application to the responsible authority.
Responsible authorities (usually local councils) in the Melbourne metropolitan area are required to check that a valid levy certificate is submitted with a leviable planning permit application.
Visit the State Revenue Office for information.
Exemptions and refunds
The Planning and Environment Act 1987 does not provide for exemptions from payment of the Metropolitan Planning Levy (MPL), except for specific grounds.
If a person intends to make a planning permit application under section 47 or section 96A of the Act, and the person has made a previous permit application for development of the same land; and paid an amount of the MPL in respect of the previous permit application, then they may apply to the Minister for an exemption certificate.
If the Minister is satisfied that the estimated cost of the development has not increased by more than 10% from the previous permit application, and the application is for development of the same land, then the Minister may grant an exemption.
The applicant can email infrastructure.contributions@transport.vic.gov.au to determine their eligibility and receive an application form.
Refunds will only be provided in the event:
- there has been a mathematical error in the calculation of the estimated cost of development provided to the Commissioner,
- the applicant dies before the application is made and no other person is proceeding with the application, or
- the relevant planning scheme was amended before the leviable permit application was made, and so as a result of the amendment, the responsible authority must refuse to grant the permit.
No refund will be provided if the cost of development reduces after the MPL has been paid, or if the permit is refused, lapses or is subsequently cancelled, or if the development never proceeds.
Page last updated: 08/04/26