The state government is changing ways property developers contribute to funding for local infrastructure, parks and services in the suburbs where they build more homes.
Premier Jacinta Allan visited Edgars Creek Secondary College in Wollert on Tuesday to announce the changes.
The changes are set to make it simpler and apply to new home developments everywhere
There will be a new pilot developer contribution system in the first 10 pilot Activity Centres across Melbourne, including Epping and Broadmeadows, where more homes will be delivered near transport, jobs and services over the coming years.
While seven growth areas in Melbourne’s urban fringe, including Hume and Whittlesea, will have access to $150 million in infrastructure funding paid for with existing developer contributions – with submissions for grants to open this year.
Through these short-term and long-term changes, suburbs that build more homes will get more funding for the things they need, like roads, paths, and public transport services, new and upgraded schools, upgrades to health and community facilities, plus parks, playgrounds, sport and recreation and open space. Statewide developer contributions for local infrastructure, parks and services
Currently, 43 of 79 councils collect developer contributions in different ways, and there are 133 separate developer contribution plans in place across the state.
A ministerial advisory committee found that the system is inequitable, complex, uncertain and wasn’t: providing more infrastructure funding in all the areas where more homes are getting built.
The state government will work with key members of its Housing Affordability Partnership –the Property Council of Australia, Urban Development Institute of Australia, Housing Industry Association, Master Builders Victoria and Assemble – to deliver long-term change that links more infrastructure with more homes.
The working group will meet from November to look at models before reporting back in March.
The contributions system in 10 Activity Centres will commence in January 2027 to give industry time to prepare.
Ms Allan said the government’s principles are that communities that build more homes should get more funding for things they need.
“Everyone can contribute, including property developers. It should apply everywhere.”
“Developers already build homes and opportunity, and many already contribute to a system like this – now we’ll work together to make the funding fairer, so growing areas get more support for schools, parks and transport.”
