You must pay a levy on certain planning permit applications to accommodate Melbourne's rapid growth
Melbourne is growing rapidly, with a projected population of up to 7.7 million by 2051. The scale of this expected growth requires strategic long-term planning under the guidance of the Metropolitan Planning Authority.
The metropolitan planning levy (MPL) will be used to fund this authority and its Plan Melbourne initiative, a long-term strategy to accommodate Melbourne’s growth. Our role is to administer the levy under Division 5A of Part 4 of the Planning and Environment Act 1987 (the Act).
What is the levy?
You have to pay the MPL if you want to apply for a planning permit on or after 1 July 2015 to develop land in metropolitan Melbourne and the estimated cost of the development for which the permit is required is more than $1 million.
If the estimated development cost is more than $1 million, you cannot lodge your planning permit application with the responsible or planning authority without a current MPL certificate.
This $1 million threshold applies for the 2015-16 financial year only. It will then be indexed by CPI every financial year. We will publish the indexed amount for 2016-17 and subsequent financial years by 31 May in each of the relevant financial years.
The MPL does not apply to an application to amend a planning permit under s72 of the Act, even if the total estimated cost of development allowed by the permit as amended is more than the current threshold of $1 million.
The levy applies to an application for a planning permit to develop land in metropolitan Melbourne. This is:
- The area covered by the Banyule, Bayside, Boroondara, Brimbank, Cardinia, Casey, Darebin, Frankston, Glen Eira, Greater Dandenong, Hobsons Bay, Hume, Kingston, Knox, Manningham, Maribyrnong, Maroondah, Melbourne, Melton, Monash, Moonee Valley, Moreland, Mornington Peninsula, Nillumbik, Port Phillip, Stonnington, Whitehorse, Whittlesea, Wyndham, Yarra and Yarra Ranges planning schemes, and
- The area within the urban growth boundary in the Mitchell Planning Scheme
The MPL is $1.30 for every $1000 of the estimated cost of the development.
If the estimated cost of the development is not a multiple of $1000, it will be rounded up or down to the nearest $1000. If the amount by which it is to be rounded is $500, it will be rounded up.
The estimated cost of the development to which a permit application relates is $2,356,782. This will be rounded up to $2,357,000 for the purpose of calculating the MPL.
$2,357,000 ÷ $1000 = $2357.
The MPL is ($2357x $1.30) = $3064.10
Apply for an MPL certificate
You apply for an MPL certificate by submitting an MPL application with us. In your application, you need to tell us the estimated cost of the development as well as other information.
The MPL application form will tell you how much MPL you need to pay based on your estimated development cost. When you submit your completed application, you must pay the levy to us by electronic funds transfer.
After we have received your MPL payment and all the information we require, we will issue you with an MPL certificate, which will state the relevant information including the estimated cost of the development.
Increased development cost
If your planning permit application requires an MPL certificate, your application will only be accepted if the estimated cost of development stated in the MPL certificate are equal to or greater than the estimated cost of the development stated in the planning permit application.
If the estimated cost of the development increases after you have received your MPL certificate but before you apply for your planning permit, and your MPL certificate has not expired, you can apply for a revised MPL certificate and pay us the additional MPL amount.
This additional MPL payment is calculated on the increase in the estimated development cost.
The original estimated cost of the development to which a permit application relates is $2,356,782.
This will be rounded up to $2,357,000 for the purpose of calculating the MPL.
$2,357,000 ÷ $1000 = $2357.
The MPL is ($2357 x $1.30) = $3064.10
A month after the MPL was paid and an MPL certificate was issued, the estimated cost of the development increased by $200,000 before the planning permit application was lodged with the planning or responsible authority.
The additional amount of MPL payable is ($200,000 divided by $1000) x $1.30 = $260
Revised MPL certificate
You apply for a revised MPL certificate by submitting another application form, telling us the increased estimated cost of the development and any further information we require. You can then pay us the additional MPL amount.
You do not have to keep records for MPL purposes, although you may wish to keep a copy of the MPL certificate.
The planning or responsible authority must keep each MPL certificate given to them for no less than five years.
We, as the organisation responsible for administering the MPL, must not disclose information obtained in relation to its administration unless it is:
- With the consent of the person to whom the information relates,
- In connection with the administration of the MPL,
- In accordance with a requirement imposed under another Act,
- To someone, or another organisation, who is authorised under legislation to receive it. Examples of authorised recipients are the Secretary to the Department of Treasury and Finance, the Secretary to the Department of Transport, Planning and Local Infrastructure, a relevant responsible authority, a relevant planning authority and a person prescribed to be an authorised recipient for the purposes of s96Y of the Act, or
- If the information will not, or is not likely to, identify a particular person