Amendment C236mbek - Introduction of a new Development Contributions Plan

Project progress
  1. AuthorisationAuthorisation
  2. ExhibitionExhibition
  3. Consider public submissionsConsider public submissions
  4. Panel hearing Panel hearing
  5. Panel reportPanel report
  6. Council decisionCouncil decision
  7. Submit to ministerSubmit to minister
  8. Final decisionFinal decision

Council is proposing to introduce a new council wide Development Contribution Plan (DCP) into the Merri-bek Planning scheme.

The DCP is a formal, lawful and equitable way to collect development contributions (DCP levy) to help fund essential new and upgraded infrastructure to cope with the growing population as a result of new development.

The DCP levy is proposed to apply to most types of new developments:

  • Residential - increase to the number of dwellings or residential building
  • Commercial - increase to the leasable floor area
  • Industrial - increase to the leasable floor area

What does Amendment C236mbek do?

The amendment will make the following changes to the Merri-bek Planning Scheme to introduce and activate the new DCP by:

  • Adding Schedule 2 to Clause 45.06 Development Contributions Plan Overlay (DCPO2) and applying the DCPO2 to all land in the Merri-bek municipal area.
  • Amending Schedule to Clause 72.04 Incorporated documents to include a reference to the Development Contributions Plan March 2026 incorporated document

What is a DCP & DCPO?

A DCP is a document that explains how new developments will help pay for the extra services and infrastructure that Council needs, such as roads, drainage and community facilities. It outlines the infrastructure projects that will be delivered, contribution rates, and the rules for calculating, collecting and administering development contributions. The DCP is proposed to be an incorporated document, giving it the same legal weight as other parts of the planning scheme.

The DCPO2 is the planning scheme tool to that puts the DCP into action to require developers to pay a levy (fee) to contribute to the cost of the infrastructure projects listed in the DCP.

Together, the DCP and DCPO2 operate as a single framework: the DCP explains what infrastructure is needed and how contributions are worked out and managed, while DCPO2 provides the legal trigger to allow Council to collect contributions from development to help deliver the infrastructure.

Why do we need a DCP?

When new homes or buildings are built, more people live, work and visit an area. This creates more demand for things like roads and community facilities. The DCP provides a fair and consistent way for new developments to share the cost of new or upgraded infrastructure needed to support the population growth new developments bring.

Exhibition of Amendment C236mbek

Amendment C236mbek is currently on public exhibition until 17 June 2026.

Find out more about Amendment C236mbek

We understand that planning scheme amendments can be complex. The below FAQs aim to answer common questions and help you understand why the DCP is being introduced into the scheme and what it will mean for development in the municipality.

  • The DCP levy applies to any residential, commercial and industrial developments where there is an increase to the number of dwellings, leasable commercial or industrial floor area to a site.

  • The money collected through the DCP levy will go towards the costs to upgrade or build new local infrastructure that have been identified in the DCP as needed to support the increase demand from the new development. Council will fund the balance of the cost.

    The types of infrastructure projects that the DCP will fund include:

    • Early years centres – Upgrades to child-care and early years centres in Hadfield and Brunswick
    • Libraries - A new library in Coburg, and upgrades to the Brunswick and Fawkner Libraries
    • Pools - Improvements to Brunswick and Pascoe Vale pools
    • Basics – upgrades to local roads and drainage, and minor changes to Coburg Town Hall

    The projects listed in the DCP will be built within the DCP’s 15-year lifespan.  The timing of works will be informed by Council’s annual budget.  

  • Because different parts of Merri‑bek need different types of infrastructure, the DCP fee changes depending on where a development is located. The fee also varies based on the type and size of the development.

    Confirmation of the exact amount will be provided when the planning or subdivision permit is issued or when a building surveyor is appointed.

    Merri-bek has been divided into 12 areas called ‘charge area’. Each charge area has its own list of infrastructure projects, which means the levy differs between areas. Suburbs with larger projects have higher fees than suburbs with smaller projects. This ensures funds are directed to local improvements that will benefit the future residents, workers and users of developments in that specific area.

    The type of development also affects how the levy is calculated. There are three main development categories:

    1. Residential – the levy is charged per additional dwelling.
    2. Commercial – the levy is charged per m2 of additional new floor space.
    3. Industrial – the levy is also charged per m2 of additional new floor space

    This approach ensures that the levy is applied fairly, based on both the impact of the development and the local infrastructure needs.

    There are also two parts to the DCP levy:

    Development Infrastructure levy (DIL)
    • Applies to all applicable residential, commercial and industrial developments.
    • Contributes to funding of infrastructure required for basic community health, safety and wellbeing, such as roads, drainage and footpaths. It also includes education-based facilities like child care centres, kindergartens and Maternal and Child Health Centres.
    • This levy needs to be paid before a building permit or statement of compliance for an approved subdivision are issued.
    Community Infrastructure levy (CIL)
    • Applies to residential development only.
    • Contributes to funding other buildings and facilities used for community or social purposes, such as libraries, recreational facilities and civic buildings.
    • This levy needs to be paid before a building permit is issued.

    Calculate a levy amount (estimate)

    You can estimate the approximate levy amount for by using these calculations and the proposed levies listed in the table that come from the proposed Schedule to the Development Contributions Overlay.

    Residential = Number of dwellings x Charge Area All Infrastructure Levy

     

    Commercial or Industrial = Total floorspace x Charge area Floorspace levy

     

    AREA
    LEVIES

    Charge Area Number & Name

    Residential

    (per dwelling)

    Commercial 

    (per 1m2)

    Industrial

    (per 1m2)

     1 

     Brunswick East/North Fitzroy

    $546

    $6.04

    $6.31

     2 

     Brunswick

    $284

    $2.30

    $2.40

     3 

     Brunswick West

    $348

    $3.21

    $3.35

     4 

     Coburg

    $2,666

    $17.17

    $17.68

     5 

     Pascoe Vale South

    $1,963

    $7.33

    $7.66

     6 

     Coburg North

    $1,838

    $5.54

    $5.79

     7 

     Pascoe Vale

    $2,157

    $6.77

    $7.08

     8 

     Oak Park

    $873

    $12.18

    $12.72

     9 

     Fawkner

    $396

    $4.24

    $4.43

     10 

     Hadfield

    $2,350

    $28.52

    $29.43

    11

    Glenroy

    $1,211

    $12.39

    $10.82

    12

    Gowanbrae/Tullamarine

    $719

    $9.99

    $10.43

    The DCP levy are are adjusted annually on 1 July each year to reflect the rise or fall in prices. The way that the amount is adjusted annually is included in the proposed Development Contributions Plan Incorporated Document.

  • The DCP levies were determined using a transparent, evidence-based process to make sure new development pays a fair share for the infrastructure it will benefit from.

    Merri-bek is divided into 12 charge areas based on suburbs.Each project in the DCP has a catchment area, ie the parts of Merri-bek where people are expected to use that piece of infrastructure. Some projects serve just one area (i.e. charge area), while others serve several. These areas determine which projects a new development will contribute to.

    A cost apportionment method is used to calculate the levies using the ‘nexus principle’ - meaning new development (or growht) should help fund the infrastructure it creates demand for. Project costs are then divided between:

    • Existing community - current residents and users 
    • Future demand from new development - demand created from growth in the DCP period
    • External demand - from outside Merri-bek or after the life of the DCP 

    The share associated with Future demand from new development forms the DCP levy.

  • Some types of development will be exempt from the DCP levy, including:

    • Construction of a building or completing works or subdivision that does not create any additional dwelling or increase to the floor space (i.e. alterations to an existing house or replacement of an existing house.)
    • A small second dwelling of 60m² or less, as defined in Ministerial Direction on the Preparation and Content of Development Contributions Plans dated 11 April 2025.
    • Developments on some categories of State Government-owned land, such as schools, land developed for affordable housing, and other minor exemptions, such as where different agreements already exist.
    • Buildings and facilities developed by or on behalf of Merri-bek City Council for Council or community use.

  • There are no transitional provisions. If Amendment C236mbek is approved, levies will need to be paid from the time the amendment is gazetted.

  • If you have a planning permit (including for subdivision) and a building permit for an increase in dwellings or commercial/industrial floor area:

    • No – you are unlikely to need to pay a DCP levy.

    If you have a planning permit for the increase in dwellings or commercial/industrial floor area, but not yet obtained the building permit:

    • Yes – you will likely need to pay a DCP levy when you apply for the building permit.

    If you have a development planning permit but not yet a subdivision planning permit:

    • Yes – you will likely need to pay a DCP levy before the Statement of Compliance is issued.

  • Maybe.

    If your planning permit application is decided after Amendment C236mbek is gazetted (ie approved and in the planning scheme), and you are proposing to increase the number of dwellings or increase leasable commercial or industrial floor area on the site, then the DCP levy applies.

    If a building permit is issued after Amendment C236mbek is gazetted, the DCP levy applies.

  • If your permit does not have an existing DCP condition:

    • the DCP levy may apply to the changes that are being sought. For example, if your amended permit application seeks to increase the number of dwellings or the commercial or industrial floor area in an approved development, the levy would apply and be calculated on the increase only.

    If your planning permit has a DCP levy condition:

    • The DPC levy remains relevant to the entire approved development, including any changes approved via an amended permit.

  • Yes - the DCP levy will apply if the subdivision permit is issued after the gazettal of Amendmen C236mbek.

  • All planning permits (for developments and subdivision) issued after gazettal of Amendment C236mbek will include a condition that sets out the payment timing of the levy.

    Generally this will be paid prior to the issue of a building permit (development permits) or Statement of Compliance (subdivision permits).

    Council will send a letter confirming the levy amount to:

    • Planning permit applicants - when a planning permit is issued (including permits to subdivide land)
    • Building surveyors - if they notify Council that they have been appointed to a project.
    • Landowners - when a planning permit is issued and/or when we notify their building surveyor.

  • If you commence works associated with a leviable development without first paying the levy, you are in breach of the Planning and Environment Act 1987 and Council can take enforcement action against you. This can include fines and prosecution.

  • No, the POSC levy will continue to apply. The public open space levy is also payable to Council when land is being subdivided.  These are separate contributions used to create and improve public open space. 

    The POSC and DCP focus on different types of projects - there is no double up.

  • The Victorian Government is proposing to apply an Infrastructure Contribution Plan (ICP) to Merri-bek's Brunswick and Coburg activity centres along Sydney Road and their catchment.

    If your property is affected by both a DCP and ICP, both levies will apply. However, the ICP levy will be reduced by the amount of the DCP levy so that you are not charged twice for the same infrastructure.

    Example:

    Your development generates the following levies:

    • Calculated DCP levy = $1000
    • Calculated ICP levy = $7,000

    To avoid double-charging, the ICP levy is adjusted:

    • DCP levy = $1000
    • ICP levy = $6000

     Levy total after adjustment = $7,000

    For more information on ICP's

    For more information on ICP's, visit the Victorian Governments webpages on:

  • As detailed above, the Public Open Space Contribution(POSC) levy and Infrastructure Contribution Plan (ICP) levy may also apply to your development.

    Other infrastructure authorities also require payment of levies.  This commonly happens when land is subdivided.  An example is levies paid to pubic authorities for water supply and sewerage infrastructure. 

If you would like to find out more about Amendment C236mbek, please contact Strategic Planning by emailing info@merri-bek.vic.gov.au or on 9240 1111.

Have your say about Amendment C236mbek

Amendment C236mbek is now on public exhibition, and you are welcome to make a written submission. Submissions must be received by 17 June 2026. Submissions received after 17 June 2026 may not be accepted. 

All submissions must include your name and contact address and clearly state why you support or oppose the amendment and describe any suggested changes.

You can submit your views:

            Strategic Planning Unit

            Merri-bek City Council

            Locked Bag 10

            Brunswick VIC 3056

 

Amendment C236mbek: Submission

Use of your personal information

Following the Privacy and Data Protection Act 2014 (VIC) and Health Records Act 2001 (VIC), the personal information submitted by you is being collected by Merri-bek City Council for the submission process. It will not be disclosed to any other external party without your consent, except as a requirement of the Planning and Environment Act 1987 (VIC). 

If we provide a copy of your submission to another person, we will include a disclaimer that it is made available for the purpose of the planning scheme amendment process as set out in the Planning and Environment Act 1987, and the information must not be used for any other purpose or distributed to another party or published online.

If you do not provide your name and address Council will not be able to consider your submission.

You can gain access to your personal information you have provided to Merri-bek City Council and if you wish to alter it, please contact Council’s Privacy Officer via telephone on 9240 1111 or email at PrivacyOfficer@merri-bek.vic.gov.au

You can find more information regarding privacy on our Privacy page.

Acknowledge and agree

Use of your personal information

Following the Privacy and Data Protection Act 2014 (VIC) and Health Records Act 2001 (VIC), the personal information submitted by you is being collected by Merri-bek City Council for the submission process. It will not be disclosed to any other external party without your consent, except as a requirement of the Planning and Environment Act 1987 (VIC). 

If we provide a copy of your submission to another person, we will include a disclaimer that it is made available for the purpose of the planning scheme amendment process as set out in the Planning and Environment Act 1987, and the information must not be used for any other purpose or distributed to another party or published online.

If you do not provide your name and address Council will not be able to consider your submission.

You can gain access to your personal information you have provided to Merri-bek City Council and if you wish to alter it, please contact Council’s Privacy Officer via telephone on 9240 1111 or email at PrivacyOfficer@merri-bek.vic.gov.au

You can find more information regarding privacy on our Privacy page.

Acknowledge and agree

By clicking 'I agree' below you acknowledge and agree that you are aware that your submission and personal information may be made available and you acknowledge and agree that to have a valid submission the details described above must be provided.

Privacy and the planning scheme amendment process

Please be aware that we collect information from organisations and individuals during the planning scheme amendment process through submissions made to an Amendment. Submissions may be handwritten, electronic (both written and audio-visual), and often contain images, maps, and plans. Submissions frequently contain personal information, which at times may be sensitive for commercial, health, or other reasons.

Natural justice and transparency are important parts of the Planning Scheme Amendment process. Council must make all submissions to an Amendment available for any person to inspect at its offices for a period of two months after the Amendment is finalised. This is a requirement of the Planning and Environment Act 1987. This includes all personal information such as names, address details, phone numbers email addresses. Your submission may also be emailed or posted to interested parties during the Planning Scheme amendment process.

We use submissions when assessing the Amendment and summaries of your submission are included in any Council report that considers the Amendment following the close of the exhibition. Your submission will also be used and disclosed in the public process of a Panel Hearing if one is required. Any submission forwarded to Planning Panels Victoria will be managed in accordance with their privacy policy.

Publication of submissions on our website

We will make all submissions available to view online on our website during the Planning Scheme Amendment process. All submissions made available online will be redacted to remove personal names, telephone numbers, and address details. Submissions will be removed from the website once the Amendment is finalised.

Use of your personal information

Following the Privacy and Data Protection Act 2014 (VIC) and Health Records Act 2001 (VIC), the personal information submitted by you is being collected by Merri-bek City Council for the submission process. It will not be disclosed to any other external party without your consent, except as a requirement of the Planning and Environment Act 1987 (VIC). 

If we provide a copy of your submission to another person, we will include a disclaimer that it is made available for the purpose of the planning scheme amendment process as set out in the Planning and Environment Act 1987, and the information must not be used for any other purpose or distributed to another party or published online.

If you do not provide your name and address Council will not be able to consider your submission.

You can gain access to your personal information you have provided to Merri-bek City Council and if you wish to alter it, please contact Council's Privacy Officer via telephone on 9240 1111 or email at PrivacyOfficer@merri-bek.vic.gov.au

You can find more information regarding privacy on our Privacy page.