Two new levies have been introduced on development in one of Melbourne’s growth regions.
Home to high-end retail and tightly held office and residential lots, the City of Stonnington council’s Development Contributions Plan Overlay has been approved.
The city made the request for an overlay via an amendment to the Stonnington Planning Scheme, citing the growing population within the municipality as why it was needed.
A development levy and a community infrastructure levy will now be imposed on new development to help pay for new and upgraded infrastructure for the city’s growing population.
The overlay will cover all land within the City of Stonnington and affects new residential, retail, commercial and industrial development.
There will be exemptions for some types of development considered not to increase the demand on infrastructure and services.
Land developed for non-government schools or housing involving the Department of Health and Human Services will also be exempt.
Stonnington’s limits run from the eastern end of Punt Road to the western end of Warrigal Road with the Yarra River as its northern boundary and Dandenong Road as its southern boundary.
“The plan will provide certainty for the council, developers and the broader community about how and to what extent new residential, retail, commercial and industrial developments will be levied to ensure the necessary infrastructure is delivered in a timely manner,” the Victorian Department of Transport and Planning said in its report on the amendment.
“The plan will further reduce the uncertainty and resource requirements associated with the current case-by-case voluntary agreements for contributions between Council and proponents.”
The council plans to use funds generated to improve open space, sustainable transport, public realm and drainage infrastructure.
Development activity is picking up within the municipality including projects at Toorak and South Yarra.
