The Metropolitan Planning Levy was introduced in 2014 and began operating on 1 July 2015. It supports the Victorian Planning Authority and the delivery of better state and metropolitan strategic planning. An improved planning system facilitates the implementation of key planning initiatives and guide quality growth and development in Melbourne and across Victoria.

As defined in the Planning and Environment Act 1987 section 96P(1) "A leviable planning permit application is an application under section 47 or 96A for a permit required for the development of land in metropolitan Melbourne if the estimated cost of the development for which the permit is required exceeds the threshold amount".

The threshold for the 2016-17 financial year is $1,013,692.16, after CPI adjustment of previous threshold (2015-16 $1,000,000.00).

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 applies to about 6% of all planning permit applications received each year in metropolitan Melbourne.

The levy is set at $1.30 per $1,000 or 0.13% of development value.

Anyone proposing a development should check if the levy applies to their proposal. If required, the levy must be paid to the State Revenue Office before applying for a planning permit, who will give you a levy certificate to confirm that you have paid.

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.

You can find more information about the levy in Planning Practice Note 82: Applying the Metropolitan Planning Levy (PDF, 249.6 KB).

You can also visit the State Revenue Office website for information about applying for a levy certificate.