New framework for developer costs

August 6, 2022 BY

A new Development Contribution Plan is in effect for Torquay and Jan Juc. Photo: SUPPLIED

An updated infrastructure contribution framework is now in effect for Torquay and Jan Juc, outlining payments developers must make for community facilities when building new housing.

The state government approved an amendment to the Torquay-Jan Juc Development Contributions Plan (DCP) on June 30 for immediate effect.

The Surf Coast Shire council developed an update to its 2011 plan during last year and approved the plan for ministerial review in March.

Changes implemented into the new plan included an increase in contribution rates following updated costings of infrastructure projects, more flexibility for timing of project delivery and clarity regarding works in kind.

Development of the 2021 update was open for public consultation late last year.

Funds raised through the DCP go towards shared community infrastructure such as road upgrades and intersection works, pathways, buildings, libraries, sporting facilities and open space improvements.

“The Development Contributions Plan system in Victoria is designed to ensure that new development makes a proportionate contribution to the new infrastructure required to service a new community,” the council’s most recent report in March stated.

The council report indicated the DCP had contributed $22.8 million since its implementation – equivalent to about 28 per cent of relevant infrastructure spending.

The payments are due at the time of subdivision of residential, building and industrial projects (development infrastructure charge) and before the issue of a building permit (development contributions plan).

Each developers contribution to the fund depends on the location and type of the build.