What are Development Contributions and why do they matter?
Development Contributions are payments to Council as a result of new development and/or the subdivision of land. Contributions are used to pay for the provision of planned infrastructure needed by the future community.
Visit the Department of Transport and Planning website for a comprehensive guide to infrastructure contributions, including Development contributions plans (DCP) and Public open space contributions.
There are three types of Development Contributions:
- Development Infrastructure Levy (DIL) - most commonly used towards infrastructure such as roads and drainage
- Public Open Space (POS) - allocated for parks and reserves
- Community Infrastructure Levy (CIL) - used towards local infrastructure such as community facilities
To determine what Development Contribution is required, Council work with the State Government to create a plan specific to the Council area. The Development Contributions Plan Overlay (DCPO) indicates the area covered by the Development Contributions Plan.
Development Contributions Plans (DCPs) help Council identify key services and infrastructure required to support its community, and;
- identify and provide costings for the infrastructure projects throughout the precinct
- establish a funding framework to deliver these projects
- ensure the developers and wider community share the costs fairly
The Development Contributions Plan documents include the infrastructure that needs to be provided, as well as the Development Contributions Plan Overlays (DCPO) and Schedules to be included in the Greater Dandenong Planning Scheme. These documents are:
- Dandenong South Industrial Area Extension Development Contributions Plan
- Keysborough South Development Contributions Plan
Where does the Development Contributions Plan (DCP) apply?
Greater Dandenong has three DCP areas. Schedules 1, 2 and 3 to Clause 45.06 of the Greater Dandenong Planning Scheme identify each DCP area:
- DCP01 Keysborough Residential Area
- DCP02 Keysborough Industrial Area
- DCP03 Lyndhurst Industrial Area
You can find out if your property is affected by a DCP overlay by visiting the Department of Transport and Planning VicPlan website and creating a property report, or by contacting Council's Planning Department.
Do I need to make a Development Contribution?
A development contribution is required when a property is included in a Development Contributions Plan and when a planning permit is granted for the development and/or subdivision of land.
- DIL and POS contributions are most often paid at the planning permit stage
- The property owner bears the responsibility for payment of the Community Infrastructure Levy. This levy is detailed within the Section 32 statement of your property’s contract of sale and is payable to Council.
What is the cost of the Development Contributions?
The Development Contributions Plan sets the rate required for each contribution. Council indexes the development contributions rates each financial year.
You can inspect a copy of the Developer Contributions Reports for free during office hours. Visit the Planning Service Counter.
The rates below apply from 5 July 2023