Metro Planning Levy Coming

The new Metropolitan Planning Levy (MPL) announced in the 2014-15 State Budget will commence soon.

From 1 July 2015, all planning permit applications for projects in metropolitan Melbourne with an estimated development (construction) cost of more than $1 million will be levied $1.30 for each $1000 of the estimated development cost.

Once you pay the levy to us, we will issue an MPL certificate. You will not be able to lodge a planning permit application without the certificate.

The State Revenue Office website has further information about the MPL, including how to apply for a certificate.

The levy will support funding for the Metropolitan Planning Authority and the implementation of Plan Melbourne. We will administer the levy, under the authority of the Minister for Planning.

The Metropolitan Planning Levy is payable before certain planning permit applications can be made. It commences from 1 July 2015 and is administered by us. It is contained in the Planning and Environment Act 1987 (PEA).

The MPL is imposed for the privilege of making a leviable planning permit application to a relevant responsible authority or planning authority to develop land in metropolitan Melbourne. You must apply for a MPL Certificate and pay the MPL before you can make a leviable planning permit application.

What is a leviable planning permit application?

This is a planning permit application made to a relevant responsible authority or planning authority to develop land in metropolitan Melbourne where the estimated cost of the development for which the permit is required exceeds the threshold amount. The threshold amount for the 2015-2016 financial year is $1 million.

The threshold amount will be indexed by CPI for each subsequent financial year. We will publish the CPI adjusted threshold amount for each year by 31 May of the previous year.

What is metropolitan Melbourne for levy purposes?

Metropolitan Melbourne is defined to mean:

1. the area covered by the Banyule, Bayside, Boroondara, Brimbank, Cardinia, Casey, Darebin, Frankston, Glen Eira, Greater Dandenong, Hobsons Bay, Hume, Kingston, Knox, Manningham, Maribyrnong, Maroondah, Melbourne, Melton, Monash, Moonee Valley, Moreland, Mornington Peninsula, Nillumbik, Port Phillip, Stonnington, Whitehorse, Whittlesea, Wyndham, Yarra and Yarra Ranges Planning Schemes; and
2. the area within the urban growth boundary in the Mitchell Planning Scheme.

Who is liable for the MPL?  

If you intend to make a leviable planning permit application, you are liable to pay the MPL.

How much is the MPL?

The MPL is $1.30 for every $1000 of the estimated cost of the development for which the leviable planning permit is required.

If the estimated cost of the development is not a multiple of $1000, the estimated cost will be rounded up or down to the nearest $1000. If the amount by which it is to be rounded is $500, it will be rounded up.

When is the MPL payable?

The MPL is payable after you have lodged an Application for Metropolitan Planning Levy (MPL) Certificate and must be paid before you can make a leviable planning permit application to a relevant responsible authority or planning authority to develop land in metropolitan Melbourne.

After you have lodged an Application for Metropolitan Planning Levy (MPL) Certificate and paid the whole MPL to us, we will issue a MPL Certificate to you. You cannot make a leviable planning permit application without a current MPL Certificate.

How do you apply for an MPL Certificate?

You apply for a MPL certificate by lodging an Application for Metropolitan Planning Levy (MPL) Certificate with us, stating the estimated cost of the development and any other information we require. When we are satisfied that the whole of the MPL has been paid in respect of the estimated cost of the development, and you have provided us with all required information, we will issue a MPL Certificate to you which states the estimated cost of the development and confirms your MPL payment.

What happens if the estimated cost of development increases after I received your MPL Certificate?

If the estimated cost of the development increases after you have received your MPL Certificate but before you apply for the leviable planning permit, and your MPL Certificate has not expired, you must lodge an Application for Metropolitan Planning Levy (MPL) Certificate (Revised) with us, stating the increased estimated cost of the development. When you lodge this Application, you must provide any further information we require and pay the additional amount of the MPL applicable to the increased cost of the development.

How do you pay the MPL?

You pay the MPL by Electronic Funds Transfer (EFT) once you have submitted your completed application.

Who administers the MPL?

The Commissioner of State Revenue has the general administration of the MPL and may do all things that are necessary or convenient to give effect to the administration of it.

The Commissioner or any person engaged in the administration of the MPL must not disclose information obtained under or in relation to the administration of the MPL, unless it is:

• with the consent of the person to whom the information relates to; or
• in connection with the administration of the MPL; or
• in accordance with a requirement imposed under an Act; or
• to an authorised recipient, including the Secretary to the Department of Treasury and Finance, the Secretary to the Department of Transport, Planning and Local Infrastructure, a relevant responsible authority, a relevant planning authority; a person prescribed to be an authorised recipient for the purposes of section 96Y of the Planning and Environment Act 1987; or
• if the information will not, or is not likely to identify a particular person.

Do you need to keep any records?

The Minister for Planning, municipal councils and any other planning authority or responsible authority must keep each MPL Certificate given to them for not less than 5 years.