Development contributions are payments or in-kind works, facilities or services provided by developers towards the supply of infrastructure required to meet the future needs of the community. The guidelines below outline the appropriate and practical application of the development contributions system, including:

New direction and reporting requirements

The Minister for Planning issued a Ministerial Direction on the Preparation and Content of Development Contributions Plans (DCPs) under section 46M of the Planning and Environment Act 1987 and reporting requirements for DCPs under section 46QD of the Act.

Transitional arrangements in Melbourne's greenfield growth areas

Transitional arrangements for levying infrastructure contributions in Melbourne's greenfield growth areas are in place from 27 October 2016 to 30 June 2017 for Precinct Structure Plans prepared before 30 June 2017 to ensure a smooth transition from the existing DCP system to the new Infrastructure Contributions Plan system.

Community Infrastructure levy

The DCP system enables a community infrastructure levy (CIL) to be imposed to fund projects involving the construction of community buildings or facilities under section 46L(1)(a) of the Act.

The maximum amount of the CIL payable under a DCP has been increased from $900 to $1,150 for each dwelling. The amount was increased on the 13 October 2016 by a Governor in Council Order under section 46(L)(2) of the Act.

The CIL cap has not increased since 2004.

Planning authorities where appropriate and justified can:

  • apply the increased CIL to new DCPs from 13 October 2016
  • amend an existing approved DCP to increase the CIL.