Reference: Department of Planning, Transport and Local Infrastructure
The Infrastructure Contribution Plan (ICP) is a new tool with which development contributions will be levied in priority growth locations. The ICP will be prepared by a Planning Authority in consultation with relevant stakeholders. It will provide the strategic justification for the application and allocation of the development contributions levy to a specific precinct or site. It will align with the Precinct Structure Plan, structure plan or similar planning framework that applies to a Strategic Development Area. It is expected that consultation on infrastructure projects, priorities and delivery will occur as part of setting the strategic framework for locations of growth and change and that this will inform the ICP.
The ICP will:
- Specify the area to which the plan applies
- Set out the infrastructure to be funded through the plan
- Identify the strategic basis for the infrastructure
- Identify any infrastructure items that are proposed to be funded by a Supplementary Levy
- Provide for collection of a levy in respect to any development for which a permit is not required.
- Be prepared in accordance with a new Ministerial Direction on the form and content of ICPs
The ICP will identify if a Standard Levy, a Supplementary Levy or both is applicable. A Supplementary Levy will be rarely used as most infrastructure should be adequately funded through the Standard Levy.
Standard Levy: standard monetary contribution to infrastructure that meets a local needs and is ‘basic and essential’ for a growing/changing community.
Supplementary Levy: variable monetary contribution for an exceptional infrastructure item that can not be funded by the Standard Levy or is required to unlock growth in a specific location.
The infrastructure that may be funded by a Standard Levy and Supplementary Levy will be set out in a list of ‘Allowable Items’ for each development setting.
The ICP will be implemented in the planning scheme through a new Infrastructure Contributions Overlay, schedule and map that will make clear where an ICP applies. The Planning Authority may seek the Ministers approval of the ICP and associated planning scheme amendment either as a full planning scheme amendment process where appropriate or request the Minister to use his powers under Section 20(4) or 20(2) of the Planning and Environment Act 1987. This may be appropriate where an ICP is developed in conjunction with a Precinct Structure Plan or similar strategic plan that has been subject to consultation.
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