The Metropolitan Planning Levy commences on 1 July 2015. It will fund the implementation of Plan Melbourne and Metropolitan Planning Authority initiatives and the costs of delivering a more streamlined planning system in Victoria. It will be administered by the Commissioner of State Revenue.
Who does the levy apply to?
The levy is imposed on planning permit applications in Metropolitan Melbourne where the estimated development costs are $1 million or more (indexed by the CPI for each financial year). It must be paid before making a planning permit application.
What areas are covered by the levy?
The levy applies to Metropolitan Melbourne (click here to view the full list of areas).
The process to make a leviable planning permit application
Before applying for a permit, a person must lodge an Application for a Metropolitan Planning Levy Certificate plus any other information requested by the Commissioner and pay the appropriate levy. The Commissioner will issue a Metropolitan Planning Levy Certificate to the person which confirms that payment has been made.
The certificate will expire 90 days after the date on which it is issued so the planning permit application will need to be made within the 90 days.
Calculating the Levy
The levy imposed is $1.30 for every $1,000 of the estimated cost of the development for which the planning permit is required (rounded up or down to the nearest $1,000).
For example: If your estimated development cost is $10,456,790, then the figure will need to be rounded up to $10,457,000 and the levy would be:
$10,457,000.00/$1,000.00 = $10,457.00
$10,457.00 x $1.30 = $13,594.10
The Commissioner can issue a revised or updated certificate in the event that the estimated cost of the development increases after obtaining the certificate but before making the leviable planning permit application, provided that the certificate has not expired, subject to payment of an additional levy.
Restrictions on obtaining a refund of the Levy
A person will only be entitled to a refund of the levy where there has been an error in calculating the amount of the levy. Accordingly, a refund of the levy will not be provided in the following circumstances:
- if the estimated cost of development decreases after the levy is paid; or
- if the permit application relating to the levy is not made, lapses, is refused or withdrawn; or
- if at the time the permit application is made, the initial threshold amount of $1 million has increased and the cost of development falls below that threshold; or
- if the permit is subsequently cancelled.
What to do next?
If you are intending on making a leviable planning permit application from 1 July 2015 and you would like some more advice on your rights in relation to the levy please feel free to contact:
Amanda Johns | Partner | +61 3 9641 8760 | email@example.com