When land is developed for urban purposes new or upgraded infrastructure is needed to support the new development and its future communities. Infrastructure contributions help fund basic and essential infrastructure for new and growing communities, such as local roads, community centres, kindergartens, maternal and child health facilities, local parks and sporting facilities.
An infrastructure contributions plan (ICP) is a statutory document incorporated in a planning scheme for the purposes of imposing infrastructure contributions to fund the provision of infrastructure and secure land for public purposes.
More information about the operation of the ICP system is provided below.
The ICP guidelines provide information and guidance about the operation of the ICP system, and the preparation, implementation and administration of an ICP.
The Minister for Planning has issued the Ministerial Direction on the Preparation and Content of ICPs under section 46GJ of the Planning and Environment Act 1987 (the Act) and reporting requirements for ICPs under section 46GZI of the Act.
- Ministerial Direction on the Preparation and Content of Infrastructure Contributions Plans and Ministerial Reporting Requirements for Infrastructure Contributions Plans (PDF, 969.3 KB) or (DOCX, 7.9 MB)
The Ministerial Direction specifies where ICPs can be used (development settings) and the requirements for preparing an ICP including standard levy rates, land valuation and indexation methods, and the infrastructure that can be funded by an ICP.
Currently an ICP can only be prepared for land in Melbourne's metropolitan greenfield growth areas (as defined in the Ministerial Direction).
Standard levy rates
The standard levy rates for the Metropolitan Greenfield Growth Areas development settings are indexed on 1 July each year in accordance with the indexation method specified in the Ministerial Direction.
The indexed standard levy rates for the 2019-20 financial year are specified in the following table. If an infrastructure contribution is imposed between 1 July and 30 June 2020, the standard levy must be calculated in accordance with the indexed rates.
2019-20 Standard levy rates
|Class of development|
|Community and recreation construction||Transport construction||Total standard levy rate|
|All amounts in $ per net developable hectare|
|Commercial and industrial development||$0||$124,344||$124,344|
The standard levy rates specified in the Ministerial Direction for the 2018-19 financial year are set out in the following table:
2018-19 Standard levy rates
|Class of development||Community and recreation construction||Transport construction||Total standard levy rate|
|All amounts in $ per net developable hectare|
|Commercial and industrial development||$0||$114,062||$114,062|
Adjustment of land credit amounts and land equalisation amounts
Land credit amounts and land equalisation amounts are adjusted on 1 July each year in accordance with the method of adjustment specified in the relevant Infrastructure Contributions Plan.
The public land index prepared by the Valuer-General Victoria for the Minister for Planning for indexing amounts on 1 July 2019 is set out in the following table:
If an ICP was incorporated in the planning scheme before 1 July 2019, each land credit amount and land equalisation amount specified in the ICP must be indexed on 1 July 2019. This is done by multiplying the land credit amount or land equalisation amount by the applicable indexation factor specified in the above table.
The Minister for Planning submits a report to Parliament each year on infrastructure contributions and development contributions:
What are Infrastructure Contributions?
When land is developed for urban purposes, new or upgraded essential infrastructure is needed to support the new development and its future communities. Infrastructure contributions are provided by developers to help fund essential infrastructure for new communities when they develop their land.
What kind of infrastructure is funded through infrastructure contributions?
Infrastructure contributions fund basic and essential infrastructure that new and growing communities need, such as local roads, community centres, kindergartens, maternal and child health facilities, local parks and sporting facilities. In some cases, infrastructure contributions can also fund state infrastructure such as public transport.
What does an infrastructure contribution consist of?
An infrastructure contribution may consist of either or both of the following two components:
- A monetary component - This is a monetary levy that may be used to fund the provision of works, services or facilities (that is, construction of community, recreation and transport infrastructure) and plan preparation costs. The levy may consist of a standard levy, a supplementary levy or both levies.
- A land component - This is land that is required to be provided for public purposes, such as land for roads, parks and community facilities (known as 'inner public purpose land'). The land component may also consist of a 'land equalisation amount' which is a monetary amount used to fund land credit amounts and acquisition of land outside the ICP plan area (known as 'outer public purpose land').
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Page last updated: 28/11/19