Metropolitan Planning Levy

20 October 2015
Legislative Council
Questions on Notice

MS DUNN — To ask the Minister for Small Business, Innovation and Trade (for the Minister for Planning): In relation to the increased Metropolitan Planning Levy and in reference to the rising costs to municipal councils in providing statutory planning services, and considering the proposed introduction of the Government’s rate-capping framework, will the Minister —

(1) Consider increasing Planning Permit Application fees that are collected by municipal councils.

(2) Consider allocating at least 50 per cent of the Metropolitan Planning Levy to municipal councils to enable them to undertake planning in their local areas.


I am informed that:

With regard to planning application fees, I am committed to ensuring that new planning and subdivision fees regulations are made that better reflect the cost of providing planning and subdivision services at the local level. On this basis, I have directed the department to formally review planning and subdivision fees, including planning application fees, through a regulatory impact statement process.

As part of this process a consultant has been engaged to advise on the costs that councils have to meet in fulfilling their planning and subdivision functions in order to ensure that fees are based on up-to-date costs. The review will include public consultation that is anticipated to take place mid 2016.

The metropolitan planning levy will go into consolidated revenue to be used by the Department of Environment, Land, Water and Planning, and the Metropolitan Planning Authority to implement Plan Melbourne initiatives and fund ongoing strategic planning for the metropolitan area. This work will ensure quality growth and development of the Melbourne metropolitan area. The levy will not be allocated to local councils.