The Victorian Government has committed to introduce the Infrastructure Contributions Plan (ICP) system in three development settings – metropolitan greenfield growth areas, regional greenfield growth areas (Regional ICP) and strategic development areas – to replace the current Development Contributions Plan (DCP) system.
The ICP system was implemented for metropolitan greenfield growth areas in 2016.
The Victorian Planning Authority’s (VPA) advice on the regional ICP will build on work previously undertaken by Department of Environment, Land, Water and Planning (DELWP) and will be delivered to the Minister for Planning.
For the regional ICP to achieve the government’s objectives it needs strike the right balance between:
- Collecting contributions vs. maintaining development viability (for example, getting the levies right)
- Simplifying the mechanism vs. accommodating the different development contexts in regional Victoria (for example, getting the tiers right)
Other considerations in finalising the regional ICP include:
- How drainage infrastructure is to be managed (something that does not form part of the metropolitan greenfield ICP)
- Confirming allowable items (for example, the list of projects that can be funded by the ICP)
- Reducing risks associated with the purchase of land as part of the implementation of ICPs
- Defining the development setting where ICPs are to be used
The VPA is conscious of current disruptions associated with COVID-19. Therefore, the VPA will plan engagement on the regional ICP to ensure that regional councils, industry groups and state government have capacity to participate in order to get the best outcome.
Update December 2022
The VPA and the Department of Transport and Planning (DTP) have paused work on the regional ICP until the Victorian Government has considered the recommendations of the Infrastructure Contributions Advisory Committee.
Where will regional ICPs apply?
ICPs apply to particular development settings (i.e. type of land where an ICP may apply) – metropolitan greenfield, regional greenfield and strategic development areas. The Ministerial Direction on the Preparation and Content of Infrastructure Contributions Plans defines development settings where ICPs will apply.
Will regional ICPs completely replace Development Contributions Plans?
It is expected that ICPs will become the default tool for defining and managing infrastructure contributions for areas identified under Ministerial Direction. The regional definition will be determined as part of this project and will be considered by the Technical and Advisory Groups. Land not included in the regional definition will be able to utilise alternative infrastructure funding arrangements such as Development Contributions Plans.
What will happen to existing DCPs?
Existing DCPs already operating within Planning Schemes will not be affected by the development of the new regional ICP. Existing DCPs will continue to be used to collect funds for infrastructure and be subject to routine indexation and review.
For more information, refer to the DTP’s ICP webpage.
Manager Infrastructure Coordination and Contributions
03 8644 8803