Victorian minister for planning Richard Wynne has introduced a bill to replace the current contributions system that has been in place for the past two decades, as part of efforts to remove needless roadblocks to approvals. Developer contributions are used to fund key infrastructure projects such as roads, as well as sports and community facilities.

According to Wynne, the inefficiencies of the existing system serve as a major impediment to the development of vital infrastructure in Victoria.

“As our cities grow, development contributions will help fund essential infrastructure. But the system was unclear, lacked transparency and was an unnecessary burden,” said Wynne. 

According to the Victorian government, the reforms were drafted following extensive consultation with industry and have been long awaited by the planning and development sectors.

The system outlined by the new legislation will provide a range of standard levies for various development contexts and land usages in order to ensure that key infrastructure in local communities can secure funding.

Following its launch, at the start of 2016, the new system will initially be applied to areas designated for new or strategic urban development.

The creation of key infrastructure is of critical importance to Victoria’s ongoing urban development, given that the state is expected to post rapid population growth over upcoming decades, with some experts predicting that Melbourne is already on track to become one of the world’s densest cities.