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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.

Page last updated: 30/06/23

Status

Policy
current
Published:
Last updated: