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Who is involved? Councils and developers
Councils will play an important role in the proposed train and tram zone activity centres by collecting infrastructure contributions directly from developers for each new home or commercial/industrial space within the Infrastructure Contribution Plan (ICP) area. This page provides detailed information about how the infrastructure contributions plan will work operationally.
How the Train and Tram Zone Activity Centre ICP will work
Where it will be applied
The charge will apply to 58 identified train and tram zone activity centres.
What is the threshold?
Charge will apply to developments that produce at least:
- one net additional dwelling or residential lot (small second dwellings exempt), or
- 100 square metres of net new commercial leasable floor area, or
- 200 square metres of net new industrial leasable floor area.
When will the levy be payable?
The levy will payable prior to issue of a:
- certificate of occupancy for a dwelling, or
- statement of compliance for a subdivision for a residential lot, or
- certificate of final inspection for commercial or industrial floorspace.
Who is it paid to?
The levy is paid to councils.
Charge rate
The charge rate is:
- $11,350 (2026-27) per dwelling
- $114 per sqm of leasable commercial floor space over the threshold
- $57 per sqm of leasable industrial floor space over the threshold.
Allocation to state and local governments
- Councils will keep $7,567 (in 2026-27) (or equivalent proportion of non-residential development levy)
- State government will receive $3,783 per dwelling (or equivalent proportion of non-residential development levy).
How charges are indexed
Charges will be indexed for every new financial year based on the producer price index (published by the Australian Bureau of Statistics) for non-residential building construction and road and bridge construction in Victoria.
Reporting and reviews
The Planning and Environment Act 1987 requires both councils and the state to report annually to the Minister for Planning on all revenue collected, transferred and expended, and for the Minister to table that consolidated reporting in Parliament each year.
Commencement
Commencing for planning permits issued from 1 January 2027 for 10 pilot Activity Centres and 1 July 2027 for the 48 proposed train and tram zone activity centres in the expanded program.
Managing existing charges
Where council Developer Contribution Plans (DCPs) are already in place, the ICP levy will be adjusted, with the council allocation reduced by the existing DCP rate amount.
Page last updated: 28/01/26