07 Nov Metropolitan Planning Levy
Recently I was discussing the common Council Contributions that apply to multiple dwelling applications. One fee that also applies to some development applications is the Metropolitan Planning Levy. This fee is a little different to the others as it is required to be paid to the State Government. It is also required to be paid before an application can be lodged.
The Metropolitan Planning Levy is payable for developments within the Metropolitan Melbourne region that have an estimated development cost that meets the set threshold. Each year on the 1st July, the threshold amount increases by CPI. The current threshold is $1,271,000 (2024). The rate of the levy is $1.30 for every $1000 of the estimated cost of the development. When the levy is paid a certificate is issued to confirm this.
This fee is only required for applications within Metropolitan Melbourne. If the estimated development cost meets the threshold, the levy will need to be paid before a planning application can be considered by the Council. The levy is triggered for any developments that meet the threshold amount, including residential and commercial projects. The levy is calculated based on the estimated cost of all works that require a planning permit. Any associated works with the project that are proposed but don’t require planning permission should be excluded from the total cost.
The levy was introduced a few years ago and is used for the delivery of Plan Melbourne initiatives and funding the Victorian Planning Authority. This authority is responsible for the long-term strategic growth and planning of Melbourne. You can find out more about the Levy and confirm all of the local council areas that it applies to here. It is also worth noting that the certificates are issued with an expiry date and that a planning application needs to be lodged before that date.