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What is a Development Contributions 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 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 Victoria Government Legislation and guidelines in preparing the Municipal DCP.
More information about DCPs in Victoria is on the government's website at:
Is there more than one DCP levy?
The proposed 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 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 Council’s 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.
Can developers pay the DCP levies in any other way?
Development contributions can be in the form of a payment, in-kind works or land - as long as the infrastructure outcome meets future community needs for local infrastructure and Council agrees.
Maribyrnong’s proposed Municipal DCP levies are linked with Council’s annual budgets, Strategic Resource Plan and Long term Financial Strategy. In most cases, Council will be building the infrastructure and developers will be expected to pay the DCP levy.
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 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 20-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 expansion of commercial or 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 where other development levies are payable as well. Maribyrnong's Urban Planning team can confirm for developers which 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 Cite West Water for water supply and sewage infrastructure.
Are any developments exempt from DCP levies?
Some types of developments are exempt from DCP levies. These exemptions can come about through legislation, ministerial directions and legal agreements with Council.
Existing ministerial exemptions apply to non-government school and housing provided by, or, on behalf of, the Department of Health and Human Services.
Maribyrnong's Municipal DCP also gives some other exemptions for replacement dwellings, small extensions to non residential buildings, child care centres and infrastructure build for council or utility authorities.
When do the DCP levies have to be paid?
Payment of the DIL can be made at the subdivision stage, planning permit stage or building permit stage. DIL payment deadlines are as follows:
Payment of the CIL must happen before a building permit is issued, although the prior issuing of a planning permit for development or subdivision can lead to payment at an earlier time.
Levies are indexed annually to take into account inflation and price indexes. Consequently delaying DCP payments to the latest possible deadline can lead to a higher levy.