WYNDHAM Council fears reforms to developer contributions will leave ratepayers shouldering the cost of essential infrastructure.
The state government is in the process of creating a developer contribution framework which would result in a standardised levy being set for different categories, including community facilities
and transport infrastructure, and development settings such as greenfield developments and residential developments.
Planning Minister Matthew Guy said the reforms would cut red tape and provide clarity to the delivery of precinct structure plans in growth areas. “A reformed development contributions system will assist in reining in rapidly-escalating costs to home buyers, assisting in maintaining an affordable land supply for Victorian families.
“The proposed framework will give local councils and industry greater certainty through a new set of standard development contribution levies for different development settings.”
Wyndham Council does not support across-the-board developer contributions.
Chief executive Kerry Thompson said developer contributions for community and recreation infrastructure was already charged at a flat rate of $900 per property but other contributions were calculated depending on the conditions and surrounds of the land. She said the Growth Areas Authority had ruled that the standard contribution was impacting on the council’s ability to deliver infrastructure.
“Ratepayers are picking up a fair burden for the costs of infrastructure in growth areas already. This occurs directly as local developer contributions only cover approximately 60 to 70per cent of recreation and community infrastructure provided locally. It also occurs indirectly with the costs of congestion, overcrowded schools and inadequate health services.” She said 10-year projections showed the council would need to sustain rate increases at about 5.5per cent a year and increase its borrowings.
“Rates as a proportion of property values are around 30per cent higher in the growth areas than the state average, indicating that local ratepayers are shouldering more than their fair share of the burden of growth.”
Mr Guy said an independent advisory committee would be established to finalise reforms. He said he would consult with stakeholders including the Urban Development Institute of Australia, the Municipal Association of Victoria and GAA before introducing the changes.
