On 2 July 2018, the Planning and Environment Amendment (Public Land Contributions) Act 2018 came into effect, introducing a land contribution model to the Infrastructure Contributions system.

On 2 July 2018, the Planning and Environment Amendment (Public Land Contributions) Act 2018 came into effect, introducing a land contribution model to the Infrastructure Contributions system. The Infrastructure Contributions Plan (ICP) system ensures the provision of infrastructure in PSP areas and that developers contribute equitably. The transfer from the Development Contributions Plan (DCP) system is to ensure typical infrastructure contributions cost consistency across all growth areas. 

A major part of the Planning and Environment Amendment (Public Land Contributions) Act 2018 is the strengthened ability for the Collecting and Development Agency (generally Council) to compulsorily acquire land as required for the timely development of key infrastructure within PSP areas. The bulked up compulsory acquisition powers remove barriers that can inhibit PSP development. This is good news for developers wishing to fast track green fields development as Council may potentially have greater willingness to assist by compulsorily acquiring land.

An ICP can include two types of levies;

1. A Monetary Levy

The monetary levy is paid in the form of a standard (typical costs) levy and/or a supplementary (atypical/PSP specific costs) levy rate on a per hectare of net developable area basis. Both the standard levy and the supplementary levy rates must be apportioned between community and recreation construction costs and transport construction costs. The appropriate levy rate is then formulated based on the class of development.  The monetary levy can only include funding for infrastructure required by the PSP area. It is not designed to fund infrastructure that is required for a need external to the PSP area.

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Source: Ratio Consulting