The Infrastructure Contributions Plan (ICP) system took effect on 27 October 2016.

The system is based on standard levies that are preset for particular development settings and land uses, in order to fund the provision of essential infrastructure that will support new or growing communities.

From 27 October 2016 the ICP system applies to metropolitan greenfield growth areas – the first of three identified development settings to have the new system applied, with regional growth areas and strategic development areas to be added later.

The Ministerial Direction on the Preparation and Content of Infrastructure Contributions Plans specifies the development settings and the details of the new system, such as levy rates, indexation methodologies and allowable items.

A key component of the system is an Infrastructure Contributions Plan which must be incorporated into the planning scheme.

Coming changes

The current ICP system will be further reformed with a change to how land for public purposes is provided. The new ICP land contribution model will be implemented in early July 2018.

The current system

Detailed information about the operation of the system is also provided in the Infrastructure Contributions Plan Guidelines, October 2016 (PDF, 4.3 MB) or  (DOC, 765.0 KB).

View the presentation (PDF, 1.0 MB) delivered to information sessions held in November 2016.

Ministerial Direction on the Preparation and Content of Infrastructure Contributions Plans issued by the Minister for Planning under section 46GF of the Planning and Environment Act 1987 requires the standard levy amounts to be indexed on 1 July of each financial year in accordance with the method of indexation specified in the applicable Annexure in the Direction.

The adjusted Infrastructure Contribution Plan standard levy amounts for Metropolitan Greenfield Growth Areas for the 2017-18 financial year are:

Metropolitan Growth Area Class of development Community and recreation construction Transport construction Public land Total Levy Rate
All amounts in $ per net developable hectare
South-East Growth Area Residential development $86,800 $108,700 $158,500 $354,000
Commercial and industrial development $0 $108,700 $52,500 $161,200
North and West Growth Areas Residential development $86,800 $108,700 $138,800 $334,300
Commercial and industrial development $0 $108,700 $45,900 $154,600

NEW - Planning and Environment Amendment (Public Land Contributions) Act 2018

The Planning and Environment Amendment (Public Land Contributions) Act 2018 (the Act) received Royal Assent on 27 February 2018, but is not yet in effect.

The Act introduces a land contribution model for the Infrastructure Contributions Plan (ICP) system.  The land contribution model enables land for public purposes to be provided as part of an infrastructure contribution when land is developed.  This replaces the monetary public land component of the standard levy.

It is proposed that the Act will come into effect in mid 2018.

For more information on what is in the Act please refer to the Act.

Planning provisions

Amendment V9 to the Victoria Planning Provisions introduced the Infrastructure Contributions Plan Overlay.

Development Contributions Plans

Information is available about Development Contributions Plans, the new Ministerial Direction including new reporting requirements and the increased Community Infrastructure Levy.  View new information

More information

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