What is a Development Contributions Plan?

    A DCP is a mechanism to equitably levy contributions from new developments to go towards the provision of planned infrastructure required to accommodate the needs of a growing population. The planned infrastructure projects are identified from Council’s 10 year Capital Works Program. 

    The contributions received assist with the cost of providing:

    • Community facilities for maternal and child health services and childcare.
    • Public realm improvements such as footpaths, tree planting and street furniture. 
    • Road renewals and upgrades, drainage, traffic management devices, walking and cycling paths, pedestrian-operated signals and accessible parking.
    • Community infrastructure including works for all other buildings or facilities used for community purposes such as community hubs and multi-purpose pavilions. 

    DCP payments offset the contribution paid by Council from rate income to provide the planned infrastructure.

    An approved DCP forms part of a planning scheme, as an overlay to all or part of a municipality. In the case of the City of Stonnington, the DCP would apply to the whole municipality.

    You can view the full list of projects in the Municipal Wide Development Contribution Plan 2020 incorporated document. 

    Why introduce a DCP and what are the benefits?

    The City of Stonnington is experiencing significant residential, retail and commercial growth.

    This growth will have an impact on the city’s infrastructure and place a financial burden on the Stonnington community.

    By adopting the DCP model, Council will benefit by being able to offset part of the cost of planned infrastructure works.

    What developments would make a contribution under the DCP?

    All new development proposing to increase the number of dwellings and/or increase leasable commercial, retail or industrial floor space will be required to make a proportionate contribution.

    What infrastructure projects can be included in a DCP?

    The DCP helps fund two types of infrastructure: Development Infrastructure and Community Infrastructure. 

    Development Infrastructure projects include:

    • a new item of infrastructure, i.e. a new childcare facility
    • an upgrade in the standard of provision of an existing infrastructure item i.e. improvements to a kindergarten to provide for 3 year old sessions
    • an extension to an existing facility i.e.. adding female change rooms to a pavilion, or
    • the total replacement of an infrastructure item after it has reached the end of its economic life i.e. reconstruction of a road

    Community Infrastructure projects include works for all other buildings or facilities used for community purposes such as community hubs and multi-purpose pavilions.

    The Stonnington DCP includes 195 projects and is anticipated to collect approximately $45 million of the estimated total cost of these projects (total cost is approximately $257 million)

    Council will be responsible for delivering these projects through to 2040. 

    What infrastructure projects cannot be included in a DCP?

    Basic utilities, provided by servicing authorities under their own legislation, such as water supply and sewerage cannot be included in a DCP.

    A DCP cannot be used to fund the total replacement of an infrastructure item.

    How much would a new development be levied?

    The amount levied to a new development is calculated based on the developments’ projected ‘share of usage’ of the planned infrastructure.

    The cost of an infrastructure project is apportioned to all demand units (existing development, external demands and new development).

    This means a new development is not responsible for the full cost of an infrastructure project and will only be levied the amount apportioned to its deemed ‘share of usage’.

    The estimated share of cost attributed to new development is approximately 19 percent of the cost of infrastructure.

    Council will pay the remaining (81 percent) amount apportioned to existing development and external demand out of general rate revenue.

    When does the DCP need to need to be paid?

    Payment of the Development Infrastructure levy must be made at one of the following stages:

    • Before a State of Compliance is issued
    • Prior to commencement of works
    • Before a building permit is issues.

    Payment of the Community Infrastructure Levy must be made before a date of issue of a Building Permit

    Both levies are paid to Council, which is the Collecting Agency under the Planning and Environment Act 1987.

    Does the DCP replace the Open Space levy?

    No, the open space levy will continue – there is no double up.

    Are any other Victorian councils using a DCP?

    Yes, 17 Victorian councils are already using, or are in the process of having a DCP approved for their municipality.

    Some councils including Banyule, Brimbank, Yarra, Darebin and Moreland have applied a municipality-wide DCP, and others over part of the municipality. 

    Are there transitional provisions for payment of levies?

    There are no transitional provisions for Amendment C296ston. If Amendment C296ston is approved, levies will need to be paid from the time the amendment is gazetted.

    What happens if I have been issued a planning permit?

    If a planning permit has been issued before the approval of the DCP, the levy will not be required to be paid, however, if the approval is issued after the gazettal of the DCP, a levy will be required to be paid.

    What happens if I have a current building permit?

    If you require a building permit and it is issued after the approval of the DCP, you will be required to pay the relevant levy or levies.

    What happens if I amend my planning or building permit?

    If you amend your planning or building permit, you may be required to pay a levy or levies.

    Does the DCP levy apply to subdivision?

    If you require a subdivision permit and it is issued after the DCP has been incorporated into the Stonnington Planning Scheme, you will be required to pay the Development Infrastructure Levy.

    How will I know the levy amount I have to pay?

    When you lodge your planning or building application, Council will provide you with an indication of the amount that you will need to pay. Confirmation of the exact amount will be provided when the planning or subdivision permit is issued or when a building surveyor is appointed.

    An estimation can be calculated using the amounts identified in the Schedule to the Development Contribution Plan Overlay. 

    What developments would not make a contribution under the DCP?

    The types of developments exempt from paying the DCP levy include:

    • Construction of a building or completing works or subdivision that does not generate an increase in dwelling numbers or floor space, i.e. alterations to an existing house or replacement of an existing house.)
    • Developments on some categories of State Government owned land, such as schools, land developed for affordable housing, and other minor exemptions such as where different agreements already exist.