The Metropolitan Planning Levy (levy) was introduced in 2014 and began operating on 1 July 2015. The levy 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 guides quality growth and development in Melbourne and across Victoria.
Threshold where the levy applies
As defined in the Planning and Environment Act 1987:
The threshold for the 2017-18 financial year is $1,029,000.00 after CPI adjustment of previous threshold (2016-17 $1,013,692.16).
Payment of 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 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. There is no refund of the levy except where there has been a mathematical error in calculating the amount of the levy payable by reference to the estimated cost of the development.
Anyone proposing a development should check whether the levy applies to their proposal. If required, the levy must be paid to the State Revenue Office (SRO) before applying for a planning permit. The SRO will give you a levy certificate that is valid for 90 days to confirm that you have paid the levy and for you 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.
You can find more information about the levy in Planning Practice Note 82: Applying the Metropolitan Planning Levy (PDF, 249.6 KB) or (DOC, 70.0 KB).
You can also visit the State Revenue Office website for information about applying for a levy certificate.