When the levy applies and how to calculate it and pay.
Key information
The metropolitan planning levy (MPL) is a charge on the planning permit application process for developments in metropolitan Melbourne. It applies to residential, commercial and mixed-use developments over a set threshold.
The levy supports the delivery of strategic planning initiatives under Plan Melbourne. You pay the levy by applying for an MPL certificate, which you submit with your planning permit application.
The levy must be paid by applicants whose proposed development exceeds the annual cost threshold. As of 1 July 2025, the threshold is $1,311,000.
The levy applies to land within metropolitan Melbourne, which includes:
- 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
- Merri-bek
- Mornington Peninsula
- Nillumbik
- Port Phillip
- Stonnington
- Whitehorse
- Whittlesea
- Wyndham
- Yarra
- Yarra Ranges
The levy also applies to land within the urban growth boundary in the Mitchell Planning Scheme.
The levy does not apply to amendments made under section 72 of the Planning and Environment Act 1987.
Rates and calculations
The levy rate is $1.30 for every $1,000 of the estimated development cost. Round the cost to the nearest $1,000.
The threshold for the 2025–26 financial year is $1,311,000. This amount changes each year on 1 July based on the consumer price index.
Example
The estimated cost of the development to which a permit application relates is $2,356,782. This is rounded up to $2,357,000 to calculate the levy:
$2,357,000 ÷ $1,000 = $2,357
The levy is
2,357 × $1.30 = $3,064.10
Estimated development cost
You enter the estimated cost of the development on your planning permit application form.
If you apply to subdivide land, the levy applies if the subdivision involves development works that need a planning permit and the cost is above the threshold. For subdivision applications, exclude the cost for works that do not require a planning permit.
The Department of Transport and Planning website has more detail on estimating cost for subdivisions.
Certificate requirements
If your estimated cost is above the threshold, you must get a MPL certificate before you lodge your planning permit application.
The certificate is valid for 180 days from the issue date. There are no extensions.
You should engage with the relevant planning authority to ensure permit applications are ready to lodge before applying for a MPL certificate.
If your estimated cost increases before you lodge your planning permit and your certificate is still valid, you can apply for a revised certificate.
Refunds are only available in very limited circumstances. There is no refund if your certificate expires before you lodge your permit application.
Learn more about certificates, how to apply, revisions and refunds.
