As of July 2015, what the Metropolitan Planning Levy means to your building project.
Who pays the Levy?
If you’re planning a building project that exceeds $1 million in value be it a house, unit, townhouse or apartments in metropolitan Melbourne, as of the 1st of July 2015 an additional levy applies once you lodge your planning permit application.
The estimated development threshold figure applies to 2015-2016 financial and is indexed according to the CPI every year.
When it’s paid a ‘Metropolitan Planning Levy’ certificate will be issued. You need this certificate to have your planning permit application processed by the responsible planning authority. Without the certificate you will fail to qualify for a permit.
What’s the levy for?
Melbourne’s growing rapidly and will become Australia’s largest city within the next few decades, with 7.7 million people by 2051. To deal with this huge growth the Government created the MPA (Metropolitan Planning Authority) in 2006 to:
• plan for the growth
• maintain a steady supply of new housing
• identify opportunities to create new jobs
• encourage investment
The new levy is being charged to provide the funds to run the MPA.
What are the levy rates?
The Metropolitan Planning Levy is $1.30 for every $1000 of estimated development cost.
The estimated cost of the development is $2,500,000.
$2,500,000 ÷ $1000 = $2500.
The MPL ($2500 x $1.30) = $3250.00
Why does the Government see the Melbourne Planning Authority as an essential service?
Ex-Premier Denis Napthine launched the ‘Plan Melbourne’ strategy in May 2014, (for the Melbourne Planning Authority).
He forecast that the population would virtually double by 2051, (7.7 million).
The city will have to provide 3.7 million jobs.
1.6 million new homes will have to be built. He said productivity will need to grow but with the view of maintaining Melbourne’s renowned livability.
As well as planning ahead for new homes and jobs the Melbourne Planning Authority will determine the framework needed for key infrastructure including freeways, rail links, industry and Port of Melbourne.
What if the estimated cost of your development increases?
If the estimated development cost increases after your original application you will need to apply for a revised MPL certificate. An additional MPL amount will then apply.
What are the affected areas?
- Glen Eira
- Greater Dandenong
- Hobsons Bay
- Moonee Valley
- Mornington Peninsula
- Port Phillip
- Yarra Ranges
- and also within the urban growth boundaries of the Mitchell Planning Scheme
How do you apply for the Metropolitan Planning Levy certificate?
You apply for a Metropolitan Planning Levy certificate via the State Revenue Office website at this URL: http://www.sro.vic.gov.au/node/1540
When you submit your completed application, you pay by electronic funds transfer.
SAW Constructions has expert experience with all permit applications for developments. If you’d like more information about how best to approach the new levy and the application process SAW Constructions can assist. We’ll quickly provide the advice you need to make the right decisions, or to speed the process. Call us today, (03) 9550 0700.