What is an Infrastructure Contributions Plan?

An Infrastructure Contributions Plan (ICP) is a statutory document incorporated in a planning scheme for the purposes of imposing infrastructure contributions to fund the provision of works, services or facilities and securing land for public purposes.

Infrastructure contributions fund basic and essential local infrastructure that new communities need, such as the land and first carriageway for arterial roads, sports reserves and community centres. ICPs can fund provision within the ICP plan area or outside the ICP plan area if it is essential. State infrastructure (apart from the land and first carriageway for arterial roads) cannot be funded by ICPs in Melbourne’s growth areas. This infrastructure is partly funded by the Growth Areas Infrastructure Contribution (GAIC).

To implement an ICP, it must be strategically justified and linked to the planning policy framework in the planning scheme. The PSP will set out the type, location, size and use of land required for public purposes and should relate the need for that land to the future development of the area. An infrastructure contribution may consist of either or both of the following two components: a monetary levy or land component.

The methods for calculating the ICP land are specified in the Ministerial Direction – Preparation and Content of Infrastructure Contributions Plans. For more information about the background of ICP, please refer to the VPA Fact Sheets on ICPs and the DTP Infrastructure Contributions.