Frequently Asked Questions
Get answers to Frequently Asked Questions about DCP
What is a Development Contribution Plan (DCP)?
DCPs require land developers to pay a levy that helps support local infrastructure. The demand for infrastructure grows with more homes and businesses. Council uses the money from levies to help pay for facilities such as community centres, footpaths and bike paths.
The DCP sets out why levies are payable, how they are calculated, and the infrastructure they help to fund. Council has followed Victorian Government legislation and guidelines in preparing the Municipal DCP.
More information about DCPs in Victoria can be found on the Department of Environment, Land, Water and Planning's website.
How is a DCP prepared?
The Victorian Government has legislation, ministerial directions and guidelines for preparing DCPs. Councils are obliged to follow these. DCPs are generally prepared with experts involved.
Is there more than one DCP levy?
The Maribyrnong DCP has two components – a Development Infrastructure Levy (DIL) and a Community Infrastructure Levy (CIL). Each levy funds different types of infrastructure.
- The DIL helps to fund development infrastructure such as roads, bike paths, open space upgrades and some community facilities such as early years and maternal child and health facilities.
- The CIL helps to fund new or extended community infrastructure such as sports pavilions and community centres.
The type of development being proposed will inform whether one or both of these levies apply. The DIL will apply to all types of development, whilst the CIL only applies to residential development.
How are DCP levies calculated?
The levies are calculated using Victorian Government guidelines and information from Council’s long-term capital infrastructure plan. Projected housing and floor space growth estimates are used to determine the share of total infrastructure that developer contributions will pay for.
How will I know what to pay?
To get an estimate of what you have to pay, use the calculator provided on our website.
If you like to pay the levy, please complete the Request a Development Contribution Plan Levy Invoice. Please ensure the person completing the form is responsible for paying the levy as the invoice will be addressed to them.
If you are unsure about what levy to pay, you will need to contact Council's Financial Services DCP Accountant by emailing dcp@maribyrnong.vic.gov.au or phone 9688 0200.
When do the DCP levies have to be paid?
Depending on what is proposed, different types of permits and approvals will be needed. For example, a proposal for more dwellings requires a planning permit for development. A planning permit is also needed for subdivision, so each dwelling can have its own land title. There is also a separate approval needed for the detailed design and construction of buildings. This is done through the issuing of building permits by licensed building surveyors.
Payment of the Community Infrastructure Levy (CIL) must be made no later than the date of issue of the building permit under the Building Act 1993.
The Development Infrastructure Levy (DIL) will be levied at the planning permit stage (for building and works), subdivision permit stage, or building permit stage, in accordance with the timing points indicated in the DCP whichever timing point occurs first. If Council seeks payment at the:
- Planning permit stage (for building and works), it must be paid before the start of construction.
- Building permit stage, it must be paid before the issue of a building permit under the Building Act 1993.
- Subdivision permit stage, it must be paid before a Statement of Compliance is issued for the subdivision.
Levies are indexed annually (by Financial Year) to take into account inflation and price indexes. Consequently delaying DCP payments to the latest possible deadline can lead to a higher levy.
Can Developers pay the DCP levies in any other way?
Developer contributions can be in the form of a payment, in-kind works or land contributions - as long as the infrastructure outcome meets future community needs for local infrastructure and is agreed by the council.
However, for the Maribyrnong DCP, Council does not expect in-kind infrastructure provision. In most cases, Council will be building the infrastructure and developers will be expected to pay the DCP levy, since they are linked with Council's annual budgets, Strategic Resource Plan and Long-term Financial Strategy.
Does Council Fund infrastructure development?
Council allocates funding to the maintenance and development of infrastructure. This is done through Council’s budget and long-term infrastructure planning. This is necessary because in established suburbs, the new infrastructure also supports the existing community.
The DIL and CIL levies in the DCP can only provide a portion of Council’s total infrastructure investment. This portion is associated with the expected change in community demand – arising from more dwellings and more industrial, retail or commercial floor space being built in the City.
When does the council provide the infrastructure that is funded by the DCP?
The funds collected from developers are used for the identified projects listed in the DCP. These will be built within the DCP’s 30-year lifespan. The timing of works will be informed by Council’s annual budget.
How is a DCP levy different to council rates?
Development contributions are one-off payments by developers towards new or upgraded local infrastructure. This infrastructure is designed to support changing community needs arising from population growth and/or more commercial/industrial floor space. Levies collected have to be spent on the infrastructure projects they are associated with.
Council rates are associated with Council’s annual budget and are informed by property values.
Do land developers pay any other development levies?
Yes, public open space contributions are also payable to Council when land is being subdivided. These separate contributions are used to create and improve public open space. There can be circumstances when other development levies are payable as well. Developers are encouraged to contact Maribyrnong’s Urban Planning team if they want to clarify what Council levies are payable for their development.
Other infrastructure authorities also require payment of levies. This commonly happens when land is subdivided. An example is levies paid to City West Water for water supply and sewerage infrastructure.
Are any developments exempt from DCP levies?
No land or development is exempt from this DCP unless exempt by legislation, ministerial direction or legal agreement with Council or stated below.
- Land developed for a non-government school, as defined in Ministerial Direction on the Preparation and Content of Development Contributions Plans of 11 October 2016.
- Land developed for housing by or for the Department of Families, Fairness and Housing, as defined in Ministerial Direction on the Preparation and Content of Development Contributions Plans of 11 October 2016. This exemption does not apply to private dwellings enabled by the Department of Families, Fairness and Housing or registered housing associations.
- Existing dwellings replaced in a development, this exemption does not apply to net additional dwellings.
- Alterations and additions to an existing dwelling which do not create an additional dwelling.
- Alterations and additions to an existing non-residential building which increases the floor area by no more than:
- ›Retail: 50 sqm
- ›Commercial: 100 sqm
- ›Industrial: 200 sqm.
- Community Infrastructure constructed by Maribyrnong City Council.
- Childcare centres.
- Servicing infrastructure constructed by a utility authority.
- Land with an existing agreement executed under section 173 of the Planning and Environment Act 1987, or a Deed of Agreement with Council which:
- ›Provides for specified works and / or land in lieu of a DCP cash payment; and
- ›Explicitly excludes further DCP contributions to be made.
- Written advice from Council that an existing demand unit credit or previously paid contribution means no further contribution is payable under this DCP.
When does a demand unit credit apply?
Where a dwelling had been demolished and the land is vacant no longer than 2 years from the date the permit is determined, an existing use credit will be applied to the dwelling that was previously on site.