Victorian Bills Explanatory Memoranda

[Index] [Search] [Download] [Bill] [Help]


Planning and Environment Amendment (Public Land Contributions) Bill 2017

Planning and Environment Amendment
 (Public Land Contributions) Bill 2017

                             Introduction Print


               EXPLANATORY MEMORANDUM


                                     General
The Planning and Environment Amendment (Public Land Contributions)
Bill 2017 amends the Planning and Environment Act 1987 (the Principal
Act) to introduce a land contribution for the infrastructure contributions plan
scheme. This will enable land or funding for land required for public
purposes to be provided as part of an infrastructure contribution when
land is developed. The Bill also increases and provides for the indexation
of the community infrastructure levy. The Bill amends the Subdivision
Act 1988 and the Building Act 1993 as a result of the new land contribution
provisions.

                                  Clause Notes

                              Part 1--Preliminary
Clause 1    sets out the main purposes of the Bill, which are--
              (a)    to amend the Planning and Environment Act 1987--
                     (i)       to introduce a land contribution model for the
                               infrastructure contributions plan scheme; and
                     (ii)      to increase and provide for the indexation of the
                               community infrastructure levy; and
                     (iii)     to make other miscellaneous amendments; and
              (b)    to make related amendments to the Subdivision
                     Act 1988 and the Building Act 1993.




581334                                   1      BILL LA INTRODUCTION 19/9/2017

 


 

Clause 2 is the commencement provision. It provides for the provisions of the Act to commence on a day or days to be proclaimed. A provision will commence on 1 September 2018 if it is not proclaimed before that date. Clause 3 provides that in the Bill the Planning and Environment Act 1987 is called the Principal Act. Part 2--Amendments relating to the provision of a public land component in infrastructure contributions Division 1--Amendments to the Planning and Environment Act 1987 Clause 4 inserts new definitions into the Principal Act for the purposes related to the new Part 3AB. These include infrastructure contributions plan, land credit amount and land equalisation amount. It also inserts definitions of building permit, building work and statement of compliance which are currently in section 201R of the Principal Act so that they can also apply to Part 3AB. Clause 14 repeals these definitions from section 201R. Clause 5 amends section 21 of the Principal Act. That section sets out the circumstances in which a submission may be made to the planning authority in respect of an amendment to a planning scheme prepared under Part 3 of that Act. Clause 5 inserts a new subsection (5) which provides that, if an amendment is to incorporate an infrastructure contributions plan into a planning scheme, a person is not entitled to make a submission that requests a change to any land credit amount or land equalisation amount specified in the plan, or any estimate of the value of public purpose land on which those amounts are based. An infrastructure contributions plan will be preceded by or prepared in conjunction with an amendment to incorporate a related precinct structure plan or strategic plan in the planning scheme (PSP amendment). The precinct structure plan or strategic plan will set out the land required for public purposes. As is the case now, where notice of the PSP amendment is given, any person may make a submission about the amendment, including in relation to the need for and location, type, amount and use of land required for public purposes. 2

 


 

However, the Bill establishes a separate process for estimating and resolving disputes about the value of certain inner public purpose land to be provided under an infrastructure contributions plan. This process is set out in Division 4 of new Part 3AB. The Bill amends sections 21, 22, 23 and 25 of the Principal Act to exclude the making and consideration of submissions under Part 3 that relate to any land credit amounts and land equalisation amounts specified in an infrastructure contributions plan, and any estimates of value of public purpose land on which those amounts are based. Clause 6 amends section 22 of the Principal Act. That section sets out the obligations on a planning authority to consider submissions in respect of a planning scheme amendment. Clause 6 inserts a new subsection (5) which provides that the planning authority must not consider a submission that requests a change to any land credit amount or land equalisation amount specified in an infrastructure contributions plan, or any estimate of value of public purpose land on which those amounts are based. Clause 7 amends section 23 of the Principal Act. That section provides that after considering a submission that requests a change to a planning scheme amendment, the planning authority must change the amendment in the manner requested or refer the submission to a panel or abandon the amendment. Clause 7 inserts a new subsection (5) which provides that these requirements do not apply to a submission that requests a change to any land credit amount or land equalisation amount specified in an infrastructure contributions plan, or any estimate of value of public purpose land on which those amounts are based. Clause 8 amends section 25 of the Principal Act. That section sets out the requirements of a panel in making a report and recommendations to a planning authority in respect of a planning scheme amendment. Clause 8 inserts a new subsection (5), which provides that a panel must not make a recommendation that an amendment be adopted with a change to any land credit amount or land equalisation amount specified in an infrastructure contributions plan, or any estimate of value of public purpose land on which those amounts are based. 3

 


 

Clause 9 inserts a note at the foot of section 29 of the Principal Act. That section provides for the adoption of a planning scheme amendment by a planning authority. The note to be inserted refers to new section 46GU (to be inserted by clause 10 of the Bill) which provides that a planning authority must not adopt an amendment to incorporate an infrastructure contributions plan into a planning scheme in certain circumstances. Clause 10 substitutes Part 3AB of the Principal Act. Existing Part 3AB provides for the preparation, imposition and administration of infrastructure contributions plans to levy monetary contributions to fund the provision of infrastructure in relation to the development of land. The Bill replaces existing Part 3AB in its entirety to introduce a land contribution model for the infrastructure contributions plan scheme. Under this model, instead of landowners paying a monetary levy to fund the acquisition of land for infrastructure within the area to which the infrastructure contributions plan applies, owners of that land must transfer the land directly as part of their infrastructure contribution. The infrastructure contribution provided by landowners may consist of either or both of the following 2 components-- • A land component--this is land identified in an approved infrastructure contributions plan for public purposes (such as land for roads, parks and community facilities). The land may be located within the area to which the infrastructure contributions plan applies (inner public purpose land) or outside of this area (outer public purpose land). The land component also consists of land equalisation amounts. • A monetary component--this is a monetary levy that may be used to fund the provision of plan preparation costs and works, services or facilities identified in an approved infrastructure contributions plan. As is the case now, the levy may consist of a standard levy, a supplementary levy or both levies. As these are 2 separate components, any funds provided as a monetary component cannot be used to fund the acquisition of public purpose land, and any funds provided as a land component cannot be used to fund the provision of plan preparation costs, works, services or facilities. 4

 


 

As is the case now, an infrastructure contributions plan incorporated in a planning scheme will be the mechanism for imposing an infrastructure contribution in relation to the development of land. The Bill introduces a number of terms and concepts related to the identification, calculation, valuation, provision and use of the land component of an infrastructure contribution. Key definitions include-- • ICP plan area, which is the area to which an infrastructure contributions plan applies. • contribution land, which is the land in the ICP plan area in respect of which an infrastructure contribution is to be imposed if the land is developed. • public purpose land, which includes inner public purpose land and outer public purpose land. This is land for public open space, community and recreation facilities, transport infrastructure (including roads) or other infrastructure that is essential to the development of the ICP plan area. • inner public purpose land, which is land in the ICP plan area of an infrastructure contributions plan that is specified in the plan as land to be set aside for public purposes. This land must be set aside on a plan under the Subdivision Act 1988 and provided directly as land as part of an infrastructure contribution. • outer public purpose land, which is land outside of the ICP plan area of an infrastructure contributions plan that is specified in the plan to be acquired for public purposes. The cost of acquiring this land is factored into the calculation of any land equalisation amount that is specified in the plan for each parcel of land within the ICP plan area. • parcel contribution percentage, which is the proportion of any contribution land in a parcel of land in the ICP plan area that is to be set aside as inner public purpose land. • ICP land contribution percentage, which is calculated for each class of development. This percentage is a calculation of the total public purpose land for the ICP plan area 5

 


 

(including inner and outer public purpose land), compared against the total contribution land in the ICP plan area. It is calculated for each class of development because the required public purpose land may vary for different classes. • land credit amount, which is a monetary amount that a landowner is entitled to be paid if the landowner develops their land and the parcel contribution percentage of that parcel is more than the ICP land contribution percentage for that class of development. • land equalisation amount, which is a monetary amount that a landowner is required to pay if the landowner develops their parcel of land and the parcel contribution percentage of that parcel is less than the ICP land contribution percentage for that class of development. The land contribution model is based on the principle that owners of land in the ICP plan area of an infrastructure contributions plan should contribute equally to the provision of public purpose land. However, in practice, inner public purpose land is not evenly distributed throughout the ICP plan area. Some parcels have to contribute more inner public purpose land than other parcels, which means that some landowners have less developable land than other landowners. To "equalise" the contributions made by landowners towards the provision of public purpose land, the model utilises the ICP land contribution percentage and parcel contribution percentage to calculate (on a parcel by parcel basis) land equalisation amounts and land credit amounts. Landowners with a lesser percentage of inner public purpose land on their parcel of land than the ICP land contribution percentage will need to pay a land equalisation amount. Landowners with a higher percentage of inner public purpose land on their parcel of land than the ICP land contribution percentage will be entitled to receive a land credit amount. In effect, the land equalisation amounts are used to pay land credit amounts to those landowners who "overprovide" inner public purpose land. 6

 


 

The land credit amount that a landowner receives is based on the estimated value of the inner public purpose land that they contribute. The land equalisation amount that a landowner pays is based on the land credit amounts and the estimated value of any outer public purpose land being funded under the infrastructure contributions plan. The Bill establishes a specific process for valuing and resolving disputes about the estimated value of certain inner public purpose land. Under that process, the affected landowner must be notified of, and may make a submission in relation to, the estimated value of the inner public purpose land, which the planning authority must consider. The Bill provides for the valuer-general to assist the parties in reaching agreement about the estimated value, or to make an independent determination regarding the estimated value if the parties fail to agree. In practice, once an infrastructure contributions plan is approved and a person wishes to develop their land, the scheme operates as follows-- • an application is made for a planning permit under the Principal Act to develop the land or an application is made for a building permit under the Building Act 1993 to carry out building work on the land; • in accordance with the approved infrastructure contributions plan, the following will be determined-- • any inner public purpose land to be provided; • any land equalisation amount to be paid or any land credit to be provided; • any monetary component to be paid; • if a planning permit for the development is issued, the permit must include conditions requiring the monetary component and any land equalisation amount to be paid to the collecting agency. The Bill sets out when the monetary amounts must be paid; • if the land component includes inner public purpose land, a planning permit issued for the development must include conditions requiring the inner public purpose land to be provided. The applicant must provide the land by ensuring it is set aside on a plan 7

 


 

under the Subdivision Act 1988 to vest in the development agency or collecting agency (depending on the circumstances). The Bill sets out when the plan must be lodged for registration under the Subdivision Act 1988. Part 3AB--Infrastructure contributions Division 1--Preliminary New section 46GA defines the following terms for the purposes of Part 3AB-- approved infrastructure contributions plan, collecting agency, contribution land, development agency, development contribution levy, ICP land contribution percentage, ICP plan area, infrastructure contribution, infrastructure contributions plan, inner public purpose land, land component, land credit amount, land equalisation amount, Minister's direction, monetary component, outer public purpose land, parcel contribution percentage, plan preparation costs, public purpose land, public purposes and type of land. New section 46GB sets out the meaning of ICP land contribution percentage. New section 46GC sets out the meaning of infrastructure contribution. It provides that an infrastructure contribution may consist of a monetary component, a land component, or both of these components. New section 46GD sets out the meaning of monetary component. The monetary component may only be used to fund the provision of certain plan preparation costs, works, services or facilities (as discussed in the explanation of new section 46GG), and must not be used to fund a land component. New section 46GE sets out the meaning of land component. New section 46GF sets out the meaning of land equalisation amount. Division 2--Infrastructure contributions plans New section 46GG provides for the incorporation of one or more infrastructure contributions plans in a planning scheme for the purposes of imposing infrastructure contributions to fund-- 8

 


 

• the provision of works, services or facilities in the ICP plan area; and • the provision of works, services or facilities outside of the plan area, if they are essential to, and the need for them is generated by, the development of land in the ICP plan area; and • the provision of land for public purposes-- • in the ICP plan area; and • outside of the ICP plan area that is essential to, and the need for which is generated by, the development of land in the ICP plan area; and • the reasonable costs and expenses incurred by the planning authority, (other than the Victorian Planning Authority) in preparing the infrastructure contributions plan and the related precinct structure plan or strategic plan. Plan preparation costs incurred by the Victorian Planning Authority as a planning authority are not funded by an infrastructure contributions plan because the Victorian Planning Authority has alternative funding sources for those costs. As set out in the note to new section 46GG, the works, services or facilities that may be funded outside of the ICP plan area are not limited to outer public purpose land but may include land already owned by a development agency. For example, an infrastructure contributions plan may fund the redevelopment of an existing kindergarten outside of the ICP plan area to accommodate the need for additional kindergarten places generated by development within the ICP plan area. The procedure for including an infrastructure contributions plan in a planning scheme is the same as for amending the planning scheme, which is set out in Part 3 of the Principal Act. Once a plan forms part of the planning scheme, it is an approved infrastructure contributions plan and the provisions for the imposition of the monetary component and land component of an infrastructure contribution apply. 9

 


 

The following persons may be planning authorities under the Principal Act--municipal councils, the Minister responsible for administering that Act (the Minister for Planning), and any Minister or public authority authorised under section 9 of that Act to prepare an amendment to a planning scheme. As set out in the note to new section 46GG(1), the planning authority that prepares the precinct structure plan or strategic plan and related infrastructure contributions plan may not be the same planning authority that subsequently prepares an amendment to the planning scheme to incorporate any of those plans. However, the plan preparation costs incurred by the planning authority that prepared the plans may still be funded by the infrastructure contributions plan. New section 46GH imposes a limitation on the inclusion of an infrastructure contributions plan in a planning scheme if it imposes an infrastructure contribution in relation to the development of land in the contribution area within the meaning of Part 9B of the Principal Act and the development agency specified in the plan is not a municipal council. The growth areas infrastructure contribution (GAIC) scheme is established under Part 9B of the Principal Act and is the appropriate scheme for imposing contributions towards the provision of State infrastructure within the GAIC contribution area. New section 46GI specifies the information that must be included in an infrastructure contributions plan. The purpose of this section is to ensure an infrastructure contributions plan contains sufficient information about where it applies, the infrastructure to be funded, the need for that infrastructure, the timing of infrastructure provision and other matters relating to the calculation, collection and use of infrastructure contributions. New section 46GI(1)(a) to (e) provides that a plan must specify the area to which the plan applies (the ICP plan area), the contribution land in the ICP plan area, any inner public purpose land in the ICP plan area to be provided under the plan, any outer public purpose land to be acquired and the development agency responsible for acquiring it, and the types of public purposes for which the public purpose land may be used and developed. 10

 


 

New section 46GI(1)(f) to (j) requires a plan to specify-- • the classes of development of land in relation to which an infrastructure contribution is to be imposed under the plan; and • the ICP land contribution percentage for each class of development; and • the parcel contribution percentage for each parcel of land in the ICP plan area (the percentage of contribution land within the parcel that is inner public purpose land); and • the land credit amount or land equalisation amount in respect of each parcel of land in the ICP plan area; and • the timing and method of adjustment to be applied to the land credit amounts and land equalisation amounts specified in the plan. Different classes of development may require different types and amounts of public purpose land. For example, land for a kindergarten may be required for residential development but not for industrial development. To take account of this, the ICP land contribution percentage must be calculated for each class of development. New section 46GI(1)(k) and (l) provides that a plan must specify the plan preparation costs, works, services or facilities to be funded through the plan and must set out the staging of the provision of the works, services or facilities or public purpose land specified in the plan. New section 46GI(1)(m) and (n) requires a plan to relate the need for the plan preparation costs, works, services or facilities to be funded through the plan and the need for the provision of public purpose land under the plan to the proposed development of land in the ICP plan area. New section 46GI(1)(o) to (q) provides that a plan must specify the plan preparation costs, works, services or facilities to be funded from the standard levy, the standard levy rate for each class of development according to the type of land to be developed, and the method and timing of annual indexation of a standard levy rate. 11

 


 

New section 46GI(1)(r) and (s) relates to the imposition of a supplementary levy. It requires a plan to specify-- • the works, services or facilities to be funded from the supplementary levy; and • the amount of the plan preparation costs and the estimated cost of each of the works, services or facilities to be funded from the supplementary levy; and • the method and timing of annual indexation of the estimated cost of each of the works, services or facilities to be funded from the supplementary levy; and • the proportion of the total of the plan preparation costs and estimated costs of works, services or facilities to be funded from the supplementary levy; and • the supplementary levy rate to be imposed in respect of each class of development of land according to each type of land to be developed. New section 46GI(1)(t) provides that a plan must specify a Minister, public authority or municipal council as the collecting agency for the purposes of new Part 3AB and the plan. New section 46GI(1)(u) provides that a plan must specify a Minister, public authority or municipal council as an entity that is a development agency for the purposes of new Part 3AB and the plan. There may be more than one development agency. New section 46GI(1)(v) provides that a plan must provide for the procedures, including timing, for the collection of an infrastructure contribution. New section 46GI(1)(w) is a general provision that enables a plan to include any other matter required by a Minister's direction to be included in the plan. New section 46GI(2) enables an infrastructure contributions plan to provide for different rates for the monetary component of an infrastructure contribution to be provided in respect of different classes of development for a type of land in the ICP plan area. It also sets out the circumstances in which a lower rate of standard levy for the development of a particular type of 12

 


 

land than the standard levy rate specified in a Minister's direction may be provided in a plan. A plan may provide for a lower rate if the planning authority, affected landowners, the relevant municipal council and the development agencies specified in the plan agree, or if the Minister consents. New section 46GI(3) provides that an infrastructure contributions plan may specify the same person to be both the collecting agency and a development agency. Division 3--Directions of Minister New section 46GJ enables the Minister to issue written directions to planning authorities in relation to the preparation and content of infrastructure contributions plans. The aim of this provision is to establish a fair and consistent approach to the preparation of plans, the funding of infrastructure under plans and the provision of land for the infrastructure identified in plans. New section 46GJ(2) sets out specific matters that may be specified in a Minister's direction. That section does not limit the power of the Minister to issue written directions specifying other matters relating to the preparation and content of infrastructure contributions plans. The specific matters set out in new section 46GJ(2) are-- (a) the types of land to which an infrastructure contributions plan may, or must not, apply; (b) the types of land which may be specified as public purpose land under an infrastructure contributions plan; (c) the types of public purposes for which public purpose land may be used or developed; (d) the method for calculating the estimated value of any inner public purpose land for the purposes of calculating land credit amounts and land equalisation amounts and for the purposes of the dispute resolution process in Division 4 of new Part 3AB; (e) the method for calculating the estimated value of any outer public purpose land to be acquired by a development agency; 13

 


 

(f) the timing, procedure and method of adjustment of those estimated land values, including by way of indexation or any other method of adjustment; (g) the method for calculating the land credit amount or land equalisation amount in respect of each parcel of land in the ICP plan area of an infrastructure contributions plan; (h) the timing and method of adjustment to be applied to those land credit amounts and land equalisation amounts, including by way of indexation or any other method of adjustment; (i) the classes of development of land in respect of which a standard levy or a supplementary levy or both of those levies may or must not be imposed under an infrastructure contributions plan; (j) specify the types of plan preparation costs and works, services or facilities that may or must not be funded from a standard levy or a supplementary levy or both of those levies under an infrastructure contributions plan; (k) the standard levy rates to be applied under an infrastructure contributions plan for each class of development of land according to the type of land to be developed; (l) the method for determining the amount of the standard levy payable in respect of a development of land according to the type of land to be developed; (m) the method and timing of annual indexation to be applied to standard levy rates; (n) the requirements that a planning authority must comply with and the criteria that the authority must have regard to when deciding whether to impose a supplementary levy for the development of land under an infrastructure contributions plan; (o) the method for estimating the cost of the works, services or facilities to be funded from a supplementary levy under an infrastructure contributions plan; 14

 


 

(p) the method and timing of annual indexation to be applied to the estimated cost of each of the works, services or facilities to be funded from a supplementary levy under an infrastructure contributions plan; (q) the method for determining the amount of supplementary levy payable in respect of any development of land in the ICP plan area; (r) the maximum amount of any standard levy imposed under an infrastructure contributions plan that may be used for the provision of community and recreation works, services or facilities according to the type of land to be developed and the class of development of that land; (s) the method and timing of annual indexation of that maximum amount; (t) the maximum proportion of any standard levy or supplementary levy imposed under an infrastructure contributions plan that may be used to fund plan preparation costs in relation to that plan; (u) the type of land in an ICP plan area of an infrastructure contributions plan to which section 18(1AB) of the Subdivision Act 1988 applies; (v) the requirements for the staging and timing of the provision of works, services or facilities or public purpose land to be funded through an infrastructure contributions plan; (w) any requirements relating to a notice under new section 46GO including information to be included in the notice; and (x) any other information to be included in an infrastructure contributions plan. Section 18(1AB) of the Subdivision Act 1988 is being substituted by clause 17 of the Bill as a consequence of the substitution of Part 3AB. The effect of new section 18(1AB), and its relationship to new section 46GJ(2)(u), is set out in the explanation of clause 17. 15

 


 

New section 46GJ(3) provides that the Minister must publish in the Government Gazette notice of every direction issued under new section 46GJ as soon as is practicable. New section 46GK provides that a planning authority must comply with a Minister's direction that applies to the authority. Division 4--Valuation and dispute resolution process for inner public purpose land Division 4 of new Part 3AB provides for the valuation of certain inner public purpose land and for the resolution of disputes about those values. The purpose of the procedure in Division 4 is to give those landowners who will be contributing more inner public purpose land than the ICP land contribution percentage appropriate notice of, and the opportunity to contest, the estimated value of land that will form the basis of the land credit amount specified in the infrastructure contributions plan. The procedure in Division 4 applies to the preparation of certain infrastructure contributions plans whether or not any planning scheme amendment prepared to incorporate the plan is exempted from any of the requirements of sections 17, 18 and 19 and the regulations under section 20 or 20A of the Principal Act. As discussed in the explanation of clause 5 of the Bill, if a planning scheme amendment is to incorporate an infrastructure contributions plan into a planning scheme, submissions cannot be made under Part 3 of the Principal Act in relation to the estimated value of public purpose land identified in the plan. New section 46GL inserts the definitions of affected owner and valuer-general for the purposes of the Division. New section 46GM provides that Division 4 applies if a planning authority is preparing an infrastructure contributions plan that provides for an infrastructure contribution that includes a land component. New section 46GN requires the planning authority to arrange for a valuer to prepare a report containing an estimate of the value of any inner public purpose land within a parcel of land in the ICP plan area of an infrastructure contributions plan if the parcel contribution percentage of that land is more than the ICP 16

 


 

land contribution percentage for the class of development that may be carried out on that land. New section 46GN does not require the planning authority to value all inner public purpose land. If the parcel contribution percentage of a parcel of land is equal to or less than the ICP land contribution percentage for the class of development that may be carried out on that land, there is no need for a valuation report to be prepared. A valuer who prepares a report must use the methodology set out in the Minister's direction and must hold the required qualifications and experience. New section 46GO requires the planning authority to give notice to owners of certain inner public purpose land in the ICP plan area of an infrastructure contributions plan. New section 46GO(1) requires a notice to be given to each owner of a parcel of land in the ICP plan area if the parcel contribution percentage of the land is more than the ICP land contribution percentage for the class of development that may be carried out on that land. New section 46GO(2) provides that a notice under subsection (1) must comply with any of the requirements in a Minister's direction applying to the infrastructure contributions plan and must also include the matters required in subsection (2)(b). This includes the estimated value of any inner public purpose land within the parcel of land according to the class of development that may be carried out on the land. New section 46GP provides that a notice under new section 46GO must be given to every affected owner and the collecting agency before a planning scheme amendment to incorporate the infrastructure contributions plan is adopted. New section 46GQ(1) provides that an affected owner who is given a notice under new section 46GO may make a written submission to the planning authority objecting to the estimated value of the inner public purpose land included in that notice. 17

 


 

New section 46GQ(2) sets out what must be included in a submission including-- (a) the reasons for making the submission; and (b) an estimate of the value of the inner public purpose land prepared by a valuer using the same methodology that was used to calculate the estimate of the value of the inner public purpose land included in the notice under new section 46GO; and (c) a copy of the valuer's report and any other document stated in the notice under new section 46GO to accompany the submission; and (d) any other information stated in the notice given under new section 46GO to be included in the submission. New section 46GQ(3) provides that a submission must be submitted to the planning authority no later than one month after the date on which the notice under new section 46GO is given to the affected owner. New section 46GQ(4) provides that the affected owner's valuer must hold the required qualifications and experience. New section 46GR(1) requires the planning authority to consider every submission that is made to it under new section 46GQ if the submission has been made by the closing date for submissions specified in the notice given under new section 46GO. New section 46GR(2) provides that the planning authority may also consider late submissions and must do so if the Minister so directs. New section 46GS sets out the decisions that the planning authority may make in relation to submissions. New section 46GS(1) provides that the planning authority may accept or reject the estimate of the value of the inner public purpose land in a submission made under section 46GQ. New section 46GS(2) provides that if the planning authority rejects the estimate, it must refer the matter to the valuer-general and notify the owner of the rejection and that referral. 18

 


 

New section 46GT(1) provides that the valuer-general must hold a conference to determine the value of inner public purpose land referred to it under section 46GS and sets out who must attend. New section 46GT(2) enables the valuer-general to fix a fee for arranging and attending the conference and sets out that half of the fee is to be paid by the affected owner and half by the planning authority. New section 46GT(3) provides that the valuer-general must use all reasonable efforts to achieve agreement between the planning authority's valuer and the affected owner's valuer as to the estimated value of the inner public purpose land. New section 46GT(4) provides that if there is agreement, the valuer-general must give written confirmation of the agreement to the affected owner and the planning authority. New section 46GT(5) provides that if the planning authority's valuer and the affected owner's valuer cannot agree on the estimated value of the inner public purpose land, the valuer-general must make a determination as to the estimated value within 15 business days after the date of the conference. New section 46GT(6) requires the valuer-general to give written notice of the determination under subsection (5) to the affected owner and the planning authority. New section 46GU provides that the planning authority must not adopt an amendment under section 29 of the Principal Act to incorporate an infrastructure contributions plan that specifies land credit amounts and land equalisation amounts in relation to a parcel of land unless-- (a) in the case of the land credit amount--that amount is based on the estimated value of the inner public purpose land in that parcel of land; (b) in the case of the land equalisation amount--the component of the land equalisation amount that relates to any inner public purpose land is based on the estimated value of that inner public purpose land. 19

 


 

If the land equalisation amount includes a component that relates to the acquisition of outer public purpose land under the infrastructure contributions plan, the planning authority must estimate the value of that land in accordance with a Minister's direction applying to the plan (see new section 46GJ(2)(e)). New section 46GU(2) sets out what constitutes the estimated value of inner public purpose land for the purposes of subsection (1). It provides that-- (a) if there are no submissions made by the affected owner under new section 46GQ, the estimated value is that contained in the notice given under new section 46GO; or (b) the estimated value accepted by the planning authority under new section 46GS(1); or (c) the estimated value confirmed by the valuer-general under section 46GT(4); or (d) the estimated value determined by the valuer-general under section 46GT(5). Division 5--Imposition and collection of infrastructure contributions New section 46GV of the Principal Act provides for the imposition and collection of an infrastructure contribution in relation to the development of land under an approved infrastructure contributions plan. New section 46GV(1) provides that section 46GV applies if an approved infrastructure contribution plan provides that an infrastructure contribution is imposed in relation to the development of land in the ICP plan area of that plan. New section 46GV(2) provides that an infrastructure contribution is imposed in relation to the development of land at the earliest time at which a person (the applicant) applies for either or both of a planning permit under the Principal Act to develop the land or a building permit under the Building Act 1993 to carry out building work on the land. New section 46GV(3) requires the applicant to pay the monetary component and any land equalisation amount of the infrastructure contribution to the collecting agency in a manner specified by the collecting agency-- 20

 


 

(a) before the earliest of-- (i) if the development of the land involves a plan under the Subdivision Act 1988, the issue of the statement of compliance in relation to that plan; or (ii) if the development of the land requires a building permit, the issue of the building permit; or (iii) a time specified in the approved infrastructure contributions plan; or (b) before the time specified in an agreement entered into by the collecting agency and the applicant. New section 46GV(4) provides that subject to subsection (8), if any land component includes inner public purpose land, the applicant must ensure that the land is provided as follows-- (a) if the inner public purpose land is for a road, the land is to be provided to the relevant development agency; and (b) in any other case, the inner public purpose is to be provided to the collecting agency. New section 46GV(5) and (6) provides that the applicant is to provide the land by ensuring that-- • any inner public purpose land for a road is set aside on a plan under the Subdivision Act 1988 to vest in the relevant development agency; and • any other inner public purpose land is set aside on a plan under the Subdivision Act 1988 to vest in the collecting agency; and • the plan is lodged for registration under section 22 of the Subdivision Act 1988 within a time specified in a planning permit or in an agreement entered into by the collecting agency and the applicant. New section 46GV(7) provides that without limiting section 62 of the Principal Act, if the applicant applies for a planning permit to develop land in the ICP plan area, the responsible authority must impose the requirements in subsections (3) and (4) as conditions on that permit. 21

 


 

New section 46GV(8) clarifies that if inner public purpose land is acquired by a development agency or the collecting agency before the time that it is required to be provided under section 46GV(4), that part of the inner public purpose land is taken to have been provided under section 46GV(4) at the time of the acquisition of land. New section 46GV(9) enables the collecting agency to require the payment of a monetary component or the provision of the land component of an infrastructure contribution to be secured to its satisfaction. New section 46GW provides that a person is entitled to be paid a land credit amount by the collecting agency if-- (a) the person must provide inner public purpose land forming part of the person's parcel of land to the collecting agency or a development agency; and (b) the parcel contribution percentage of that parcel is more than the ICP land contribution percentage for that class of development. New section 46GX(1) enables the collecting agency to accept works, services or facilities in part or full satisfaction of the monetary component of an infrastructure contribution payable by the applicant to the collecting agency under new section 46GV. New section 46GX(2) provides that before accepting works, services or facilities under subsection (1), the collecting agency must first obtain the agreement of the development agency or agencies unless it is the only development agency. The requirement for agreement applies whether the works are provided before or after the applicant is required to provide the monetary component. Division 6--Responsibilities of collecting agencies and development agencies New section 46GY(1) provides that the collecting agency must keep proper and separate accounts and records of the following-- (a) in relation to any monetary component-- (i) any monetary component paid to the collecting agency; and 22

 


 

(ii) any monetary component forwarded in whole or in part to a planning authority or development agency by the collecting agency; (b) in relation to any land component-- (i) any land equalisation amount paid to the collecting agency; and (ii) any land equalisation amount the whole or part of which is-- (A) expended by the collecting agency; or (B) forwarded to a development agency by the collecting agency; and (iii) any inner public purpose land that is vested in the collecting agency under the Subdivision Act 1988; and (iv) any inner public purpose land that is acquired by the collecting agency before the time it is required to be provided to the collecting agency under section 46GV(4); and (v) any inner public purpose land that is transferred to a development agency by the collecting agency; (c) any land credit amount paid to a person by the collecting agency. New section 46GY(2) provides that if the collecting agency is a municipal council, these accounts and records must be kept in accordance with the Local Government Act 1989. New section 46GZ provides for additional responsibilities for the collecting agency under an approved infrastructure contributions plan, whether or not it is also a development agency under that plan. New section 46GZ(2) provides that the collecting agency must forward any part of a monetary component paid to it-- (a) that is imposed for plan preparation costs, to the planning authority that incurred the costs unless the agency is that planning authority; and 23

 


 

(b) that is imposed for the carrying out of works, services or facilities, to the development agency that is specified in the approved infrastructure contributions plan as responsible for those works, services or facilities. New section 46GZ(3) provides that if the collecting agency is not a municipal council, it must pay into the Consolidated Fund any part of a monetary component that is not forwarded to a planning authority or development agency under subsection (2). New section 46GZ(4) provides that the collecting agency must use land equalisation credits that are paid to it to pay land credit amounts, except any amounts that must be forwarded to a development agency for the acquisition of outer public purpose land. New section 46GZ(5) provides that the collecting agency must forward any part of a land equalisation amount required for the acquisition of outer public purpose land to the relevant development agency. New section 46GZ(6) provides that the requirements in subsections (2)(b) and (5) do not apply if the collecting agency is the relevant development agency. New section 46GZ(7) provides that the collecting agency must pay land credit amounts to each person entitled to them under section 46GW. New section 46GZ(8) provides that the collecting agency must pay into the Consolidated Fund any land equalisation amounts that are not immediately used to pay land credit amounts unless the agency is a municipal council. New section 46GY(9) provides that if any inner public purpose land is vested in the collecting agency under the Subdivision Act 1988, or is acquired by the collecting agency before it is required to be provided to the collecting agency under section 46GV(4), the collecting agency must transfer the estate in fee simple in the land to the development agency responsible for the use and development of the land unless the collecting agency is that development agency. 24

 


 

New section 46GZA(1) provides that a development agency must keep proper and separate accounts and records of the following-- (a) any part of a monetary component or land equalisation amount forwarded to the development agency by the collecting agency; (b) any part of a monetary component or land equalisation amount expended by the development agency; (c) any inner public purpose land that is-- (i) vested as a road in the development agency under the Subdivision Act 1988; (iii) acquired by the development agency before the time it is required to be provided under section 46GV(4); (iii) transferred to the development agency by the collecting agency; (d) the use and development by the development agency of any inner public purpose land; (e) the acquisition and use and development by the development agency of any outer public purpose land. New section 46GZA(2) provides that if the development agency is a municipal council, these accounts and records must be kept in accordance with the Local Government Act 1989. New section 46GZB(1) provides for additional responsibilities of a development agency under an approved infrastructure contributions plan, whether or not it is also the collecting agency under the plan. New section 46GZB(2) provides that if the development agency is not a municipal council, it must pay into the Consolidated Fund any part of a monetary component or land equalisation amount forwarded to it by the collecting agency. New section 46GZB(3)(a) provides that the development agency must apply the monetary component only-- (i) for the purpose of plan preparation costs, if it is the planning authority that incurred the costs; or 25

 


 

(ii) for the provision of works, services or facilities for which it is responsible under the approved infrastructure contributions plan. New section 46GZB(3)(b) provides that in relation to any inner public purpose land that is vested in the development agency under the Subdivision Act 1988 has been transferred to the development agency by the collecting agency or has been acquired by the development agency before the time it was required to be provided under section 46GV(4), the development agency must use and develop that land for a public purpose specified in the approved infrastructure contributions plan. New section 46GZB(3)(c) provides that the development agency must, in relation to any outer public purpose land to be acquired by the development agency, acquire the land using any part of the land equalisation amount imposed for that purpose and use and develop the land for a public purpose specified in the approved infrastructure contributions plan. New section 46GZB(4) provides that if the Victorian Planning Authority is the collecting agency under an approved infrastructure contributions plan, a development agency under the plan to which the Authority has provided any part of an infrastructure contribution must, in accordance with the Authority's requirements, report on its use of the infrastructure contribution in its annual report to the Authority. Division 7--Responsibilities of collecting agencies and development agencies if infrastructure contributions not expended New section 46GZC provides that Division 7 applies despite anything to the contrary in Division 6 and it applies to the collecting agency and a development agency whether or not the agency is a municipal council. New section 46GZD provides for the use and expenditure of a monetary component that has not been expended at the date on which an approved infrastructure contributions plan expires. New section 46GZD(1) provides that new section 46GZD applies if any part of a monetary component under an approved infrastructure contributions plan has been forwarded or paid to a development agency for the provision of works, services or 26

 


 

facilities in an ICP plan area and an amount of that monetary component has not been expended when the plan expires. New section 46GZD(2) provides that the development agency must, within 6 months after the date on which the approved infrastructure contributions plan expires-- (a) with the consent of the Minister and in the manner approved by the Minister--expend the remaining amount to provide other works, services or facilities in the ICP plan area; or (b) if that remaining amount is not expended on other works, services or facilities--pay that amount to the collecting agency, unless the development agency is the collecting agency. New section 46GZD(3) provides that the collecting agency must divide the remaining amount of the monetary component among the current owners of each parcel of land in the ICP plan area, in respect of which a monetary component under the approved infrastructure contributions plan has been paid, and pay each current owner the divided amount. New section 46GZD(4) specifies that the divided amount referred to in subsection (3)(b) must be in proportion to the area of contribution land in the current owner's parcel of land compared to the total area of contribution land in the ICP plan area in respect of which a monetary component under the approved infrastructure contributions plan has been paid. New section 46GZD(5) provides that the collecting agency must pay the amount under subsection (3) within 12 months-- (a) of receiving the payment of the remaining monetary amount from the development agency, if the collecting agency is not the development agency; (b) after the date on which the approved infrastructure contributions plan expires, if the collecting agency is the development agency. New section 46GZE provides for the use and expenditure of land equalisation amounts that have not been expended at the date on which an approved infrastructure contributions plan expires. 27

 


 

New section 46GZE(1) provides that new section 46GZE applies if any part of a land equalisation amount has been paid to the collecting agency or forwarded to a development agency specified in an approved infrastructure contributions plan and any part of that amount has not been expended when the plan expires. New section 46GZE(2) provides that a development agency must forward to the collecting agency any part of a land equalisation amount not expended by it to acquire outer public purpose land, unless the development agency is the collecting agency. New section 46GZE(3) provides that the collecting agency must within 12 months after the date on which the approved infrastructure contributions plan expires-- (a) with the consent of the Minister and in the manner approved by the Minister--expend the remaining land equalisation amount to acquire land in the municipal district in which the ICP plan area is situated for a public purpose specified in a Minister's direction applying to the plan; or (b) divide that amount among the current owners of each parcel of land in the ICP plan area, in respect of which a land equalisation amount has been paid or inner public purpose land has been provided in accordance with the approved infrastructure contributions plan, and pay each current owner the divided amount. New section 46GZE(4) specifies that the divided amount referred to in subsection (3)(b)(ii) must be in proportion to the area of contribution land in the current owner's parcel of land compared to the total area of contribution land in the ICP plan area in respect of which a land equalisation amount has been paid, or inner public purpose land has been provided, under the approved infrastructure contributions plan. New section 46GZF provides for the use or sale of public purpose land that is no longer required for a public purpose at the date on which an approved infrastructure contributions plan expires. New section 46GZF(1) provides that new section 46GZF applies if, at the date of expiry of an approved infrastructure contributions plan, inner public purpose land that has vested in, 28

 


 

been acquired by or been transferred to a development agency or outer public purpose land acquired by a development agency is no longer required for a public purpose specified in the plan. New section 46GZF(2) provides that the development agency must, within 12 months after the date on which an approved infrastructure contributions plan expires-- (a) use the public purpose land for a public purpose approved by the Minister; or (b) sell the public purpose land. New section 46GZF(3) provides that if the public purpose land is sold, the development agency must-- (a) pay the proceeds of the sale (less the sale expenses) to the collecting agency within 3 months after the sale, unless it is the collecting agency; or (b) with the consent of the Minister and in the manner approved by the Minister-- (i) expend the sale proceeds (less the sale expenses) to acquire other land in the municipal district in which the ICP plan area is situated; and (ii) ensure the other acquired land is used for a public purpose specified in a Minister's direction applying to the approved infrastructure contributions plan. New section 46GZF(4) provides that the collecting agency must divide the proceeds of the sale of public purpose land amongst the current owners of each parcel of land in the ICP plan area, in respect of which a land equalisation amount has been paid or inner public purpose land has been provided under the approved infrastructure contributions plan. The portion paid to each current owner is to be in accordance with subsection (5). New section 46GZF(5) provides that the portion paid to a current owner under subsection (4) must be in proportion to the area of contribution land in the current owner's parcel of land compared to the total area of contribution land in the ICP plan area in respect of which a land equalisation amount has been paid, or inner public purpose land has been provided, under the approved infrastructure contributions plan. 29

 


 

New section 46GZF(6) provides that the collecting agency must make the payments-- (a) within 6 months after being paid the proceeds of the sale of the public purpose land, if the collecting agency is not the development agency; or (b) within 18 months after the expiry of the approved infrastructure contributions plan, if the collecting agency is the development agency. Division 8--General New section 46GZG provides that the Consolidated Fund is appropriated to the extent necessary for sections 46GZ(7), 46GZB(3), 46GZD(2) and (3), 46GZE(2) and (3) and 46GZF(3) and (4). New section 46GZH provides that the collecting agency may recover as a debt the monetary component, or any land equalisation amount of a land component, of an infrastructure contribution that is payable to the agency. New section 46GZI provides that a collecting agency must report to the Minister at the times required by and in accordance with the requirements of the Minister on the following-- • any infrastructure contributions provided to the collecting agency under new Part 3AB; and • any works, services or facilities accepted by the collecting agency in full or part satisfaction of the monetary components of any infrastructure contributions provided; and • any land credit amounts paid under new Part 3AB. New section 46GZI also provides that a development agency must report to the Minister at the times required by and in accordance with the requirements of the Minister on the following-- • the expenditure of any monetary components of infrastructure contribution paid to the development agency under new Part 3AB; and 30

 


 

• the use and development of any inner public purpose land which has vested in, been acquired by or transferred to the development agency under new Part 3AB; and • the use made by the development agency of any works, services or facilities accepted by the collecting agency in satisfaction of monetary components; and • the expenditure of any land equalisation amounts paid or forwarded to the development agency under new Part 3AB; and • the use and development of any outer public purpose land acquired by the development agency. New section 46GZJ requires the Minister to table in Parliament, at least annually, a report setting out-- (a) the total infrastructure contributions provided and the total amount of development contribution levies paid, to a municipal council that is a collecting agency or development agency during the period covered by the report; and (b) the total infrastructure contributions provided, and the total amount of the development contribution levies paid to a collecting agency or development agency that is not a municipal council during the period covered by the report; and (c) the total amount of the monetary components of infrastructure contributions, land equalisation amounts and development contribution levies paid into the Consolidated Fund during the period covered by the report; and (d) the total amount of the monetary components of infrastructure contributions, land equalisation amounts and development contribution levies paid out of the Consolidated Fund during the period covered by the report; and 31

 


 

(e) the total infrastructure contributions provided, and the total amount of the development contribution levies paid during the period covered by the report. New section 46GZK provides that a collecting agency or a development agency may, despite any other Act other than the Charter of Human Rights and Responsibilities Act 2006, deal with public purpose land which has vested in, been acquired by or been transferred to it under new Part 3AB in accordance with that Part and the approved infrastructure contributions plan. Clause 11 amends section 62 of the Principal Act which deals with conditions on planning permits. Clause 11(1) substitutes subsection (5)(a) to enable a responsible authority to include a condition to implement an approved development contributions plan or an approved infrastructure contributions plan. Clause 11(2) makes consequential amendments to the cross references in subsection (6)(a) as a result of the enactment of new Part 3AB. Clause 12 amends section 98 of the Principal Act which provides a right of compensation for losses arising from the reservation of land by a planning scheme. The amendments exclude a right to claim compensation for land that has been or is to be acquired by or provided to the collecting agency or development agency under new Part 3AB or in accordance with an approved infrastructure contributions plan. That land is provided as part of an infrastructure contribution. Clause 13 inserts a new Division 1A into Part 9 of the Principal Act. This new Division deals with the compulsory acquisition of public purpose land specified in an approved infrastructure contributions plan by collecting agencies and development agencies. There may be circumstances where inner public purpose land needs to be acquired before the owner of that land is ready to develop. For example, land identified in an approved infrastructure contributions plan for a road may need to be acquired to complete the construction of a road providing access to development on surrounding land within the ICP plan area. To facilitate the acquisition of that inner public purpose land before the time that it is required to be provided 32

 


 

under new section 46GV(4), the Bill enables a collecting agency or a development agency to compulsorily acquire inner public purpose land at any time at the agency's discretion. New Division 1A also provides for the compulsory acquisition of outer public purpose land by the relevant development agency. Subdivision 1--General New section 172A is an interpretative provision which provides that terms used in new Division 1A include terms defined in new Part 3AB. New section 172B applies the Land Acquisition and Compensation Act 1986 to the acquisition of land by a collecting agency or development agency under new Division 1A. Subdivision 2--Acquisition of outer public purpose land New section 172C empowers a development agency to compulsorily acquire any outer public purpose land that is specified in an approved infrastructure contributions plan to be acquired by that agency. Subdivision 3--Acquisition of inner public purpose land New section 172D provides that-- • a collecting agency specified in an approved infrastructure contributions plan may compulsorily acquire any inner public purpose land that is specified in the plan before the time that the land is required to be provided to the collecting agency in accordance with section 46GV(4); • a development agency specified in an approved infrastructure contributions plan may compulsorily acquire any inner public purpose land for which it is responsible before the time that the land is required to be provided under section 46GV(4). Subdivision 4--Compensation for acquisition of inner public purpose land New section 172E provides that Subdivision 4 applies if-- • inner public purpose land forms part of a parcel of land in an ICP plan area of an approved infrastructure contributions plan; and 33

 


 

• either-- • the collecting agency compulsorily acquires any part of the inner public purpose land before the time that land is required to be provided to the collecting agency under new Part 3AB; or • a development agency compulsorily acquires any part of the inner public purpose land for which it is responsible under the plan before the time that land is required to be provided under new section 46GV(4). New section 172F provides for the amount of compensation payable to an owner of land when inner public purpose land is acquired from the owner of a parcel of land which has a parcel contribution percentage greater than the ICP land contribution percentage. The compensation will be equivalent to the land credit amount that the owner would have been entitled to be paid under new section 46GZ(7) in respect of the land or the relevant portion of the land acquired. New section 172G provides that an owner of inner public purpose land is not entitled to compensation under the Land Acquisition and Compensation Act 1986 for the acquisition or partial acquisition of that land if the parcel contribution percentage relating to that parcel of land is equal to or less than the ICP land contribution percentage for the land in the ICP plan area. This is because the inner public purpose land is required to be provided by the owner as part of an infrastructure contribution under new section 46GV on the development of the land. Clause 14 repeals a number of definitions in section 201R of the Principal Act that have been moved to section 3(1) of that Act. Clause 15 inserts new section 224 into the Principal Act to enable the Governor in Council to make regulations containing provisions of a transitional nature arising as a result of the enactment of the Planning and Environment Amendment (Public Land Contributions) Act 2017. New section 224(6) provides that new section 224 expires on 1 September 2020. 34

 


 

Division 2--Amendment of the Subdivision Act 1988 Clause 16 amends section 3(1) of the Subdivision Act 1988 to insert a number of definitions from new Part 3AB of the Principal Act. Clause 17 substitutes a new subsection (1AB) into section 18 of the Subdivision Act 1988. Section 18 enables a council to impose a requirement for public open space in relation to the subdivision of land where a requirement for public open space is not specified in the planning scheme. New section 18(1AB) provides that section 18 does not apply to a parcel of land to which a planning scheme applies if-- • an approved infrastructure contributions plan applies to the parcel of land; and • on the development of the parcel of land, a land component or a land equalisation amount for public open space must be provided under Part 3AB of the Principal Act; and • a Minister's direction issued under Part 3AB of the Principal Act specifies the land to be set aside as public open space in the parcel of land as the type of land to which section 18(1AB) applies. The purpose of this amendment, together with new section 46GJ(2)(u) of the Principal Act (to be inserted by clause 10 of the Bill), is to enable the Minister to issue written directions in respect of particular types of land that, in effect, require any contributions towards public open space to be provided under an infrastructure contributions plan approved under that Act, and not under section 18 of the Subdivision Act 1988. Clause 18 inserts a new subsection (5) into section 20 of the Subdivision Act 1988. Section 20 sets out how a Council must deal with public open space land vested in it or any monetary contribution for public open space. New section 20(5) provides that section 20 does not apply to land specified in an approved infrastructure contributions plan as land to be set aside as public open space. 35

 


 

Clause 19 inserts a new subsection (2CA) into section 21 of the Subdivision Act 1988. Section 21 sets out the requirements for the issuing of a statement of compliance by a Council in relation to a plan of subdivision. New section 21(2CA) provides that a Council must not issue a statement of compliance in relation to a plan relating to land, in respect of which an infrastructure contribution is imposed under an approved infrastructure contributions plan, unless the applicant has satisfied the Council that-- • any monetary component and any land equalisation amount has been paid in accordance with new section 46GV(3) of the Principal Act or an agreement has been entered into with the collecting agency for payment of those amounts; and • any land in the plan required to be provided to the collecting agency or a development agency as part of a land component of the infrastructure contribution has been set aside as a reserve or a road on the plan to vest in the collecting agency or development agency (as the case requires) under the Subdivision Act 1988. Clause 20 amends section 24 of the Subdivision Act 1988 which sets out the effect of registration of a plan under that Act. The amendments provide that land set aside on a plan as a reserve for public purposes in accordance with an approved infrastructure plan vests in the collecting agency free of restrictions. Division 3--Amendment of the Building Act 1993 Clause 21 amends section 3(1) of the Building Act 1993 to include definitions of approved infrastructure contributions plan, collecting agency, development agency and infrastructure contribution. Clause 22 inserts new subsections (6) and (7) into section 24 of the Building Act 1993. Section 24 sets out the circumstances when a relevant building surveyor must refuse to issue a building permit. New section 24(6) requires the relevant building surveyor to refuse to issue a building permit for building work for which a monetary contribution or land equalisation amount is payable 36

 


 

under an approved infrastructure contributions plan unless the building surveyor is satisfied that those amounts have been paid or an agreement entered into with the collecting agency for payment. New section 24(7) requires the relevant building surveyor to refuse to issue a building permit for building work for which a land component of an infrastructure contribution is imposed under an approved infrastructure contributions plan unless the building surveyor is satisfied that any land in the plan to be provided to the collecting agency or a development agency as inner public purpose land has been set aside on a plan under the Subdivision Act 1988 for that purpose and the plan has been lodged for registration under section 22 of that Act. Part 3--Other amendments to the Planning and Environment Act 1987 Part 3 of the Bill removes a superfluous word from the definition of low income households in section 3AA(4) of the Principal Act. Part 3 of the Bill provides for the increase of the maximum amount of community infrastructure levy that may be imposed under a development contributions plan for the construction of a dwelling. It also provides for the annual indexation of that maximum amount. Existing section 46L(1)(a) specifies a maximum amount of community infrastructure levy of $900 for each dwelling constructed. However, existing section 46L(2) enables the Governor in Council from time to time to make an Order to vary this maximum amount. On 13 October 2016, an Order was published to increase the maximum amount of the community infrastructure levy to $1150 for each dwelling constructed. Clause 23 of the Bill amends the Principal Act to increase the maximum amount of the community infrastructure levy to $1150 for each dwelling constructed, consistent with the Order. Part 3 of the Bill also provides for the annual indexation of any community infrastructure levy amount for the construction of a dwelling specified in an approved development contributions plan. Clause 23 amends section 3AA(4) of the Planning and Environment Act 1987 to remove the unnecessary word "very" from the definition of low income households in that subsection. 37

 


 

Clause 24 amends section 46L of the Principal Act. Section 46L sets the maximum amount for the community infrastructure levy under Part 3B of the Principal Act. The amendments change the maximum amount of levy for the construction of a dwelling (the maximum dwelling amount) from $900 to $1150 for the financial year beginning 1 July 2018 and provide for that amount to be adjusted for each following year in accordance with new section 46LA (being inserted into the Principal Act by clause 24). The adjusted maximum dwelling amount is to be published on the Department's Internet site. Clause 25 inserts new sections 46LA, 46LB and 46LC into the Principal Act. New section 46LA prescribes a method for calculating the adjusted maximum dwelling amount defined in new section 46L(3) (see clause 23(2)). New section 46LB provides that if an approved development contributions plan requires the payment of an amount of community infrastructure levy in respect of each dwelling constructed, that amount is to be adjusted (the adjusted payable dwelling amount), for plans approved on or before 30 June 2019, each financial year beginning on 1 July 2018, and in any other case, the financial year in which the plan was approved. New section 46LC prescribes a method for calculating the adjusted payable dwelling amount. Part 4--Repeal of amending Act Clause 26 provides for the automatic repeal of the amending Act on 1 September 2019. The repeal of the Act does not affect in any way the continuing operation of the amendments made by this Act (see section 15(1) of the Interpretation of Legislation Act 1984). 38

 


 

 


[Index] [Search] [Download] [Bill] [Help]