REASONS FOR DECISION TO EXERCISE POWER OF INTERVENTION

UNDER SECTION 20(4) OF THE PLANNING AND ENVIRONMENT ACT 1987

PLANNING SCHEME AMENDMENT GC75

The Planning and Environment Act 1987 (the Act), the Heritage Act 1995 and the Victorian Civil and Administrative Tribunal Act 1998 provide for the intervention of the Minister for Planning in planning and heritage processes.

In exercising my powers of intervention, I have agreed to:

§  Make publicly available written reasons for each decision; and

§  Provide a report to Parliament at least every twelve months detailing the nature of each intervention.

REQUEST FOR INTERVENTION

1.  No person other than the Minister has proposed or requested this intervention.

WHAT POWER OF INTERVENTION IS BEING USED?

2.  I have decided to exercise my powers to exempt myself from all the requirements of sections 17, 18 and 19 of the Act and the regulations in respect to Amendment GC75 to the Planning Scheme.

3.  Section 20(4) of the Act enables the Minister for Planning to exempt an amendment which the Minister prepares from any of the requirements of sections 17, 18 and 19 of the Act or the regulations.

4.  In seeking to exercise this power, section 20(4) of the Act requires that the Minister must consider that compliance with any of those requirements is not warranted or that the interests of Victoria or any part of Victoria make such an exemption appropriate.

BACKGROUND

5.  The Development Contributions Plan (DCP) system enables a community infrastructure levy (CIL) to be imposed to fund projects involving the construction of community buildings or facilities under section 46L(1)(a) of the Act. The Act sets a cap on the amount of the CIL that can be set in a DCP. In 2004, the Act was amended to increase the cap from $450 for each dwelling constructed to $900.

6.  On the 13 October 2016, the maximum amount of the CIL payable under a DCP was increased from $900 to $1,150 for each dwelling by a Governor in Council Order under section 46(L)(2) of the Act.

7.  Following the change to the maximum CIL amount by the Governor in Council Order, Amendment GC75 has been prepared to amend the Ballarat, Baw Baw, Cardinia, Casey, East Gippsland, Hobsons Bay, Hume, LaTrobe, Melton, Mitchell, Surf Coast, Whittlesea and Wyndham planning schemes. The amendment:

• Amends 36 DCPs to change the CIL payable and include a provision that the CIL can be varied in specific circumstances.

• Amends 2 DCPs to change the CIL payable from an amount payable per hectare to an amount payable per dwelling consistent with the Planning and Environment Act 1987 and include a provision that the CIL can be varied in specific circumstances.

• Amends 5 DCPs to include a provision that the CIL can be varied in specific circumstances.

Benefits of exemption

8.  The exemption will enable a prompt decision on the adoption, approval and gazettal of the amendment.

9.  There is currently a shortfall in most DCPs between the CIL payable and the cost of the community infrastructure funded by the CIL. Exempting the amendment will allow councils to levy the new CIL as soon as possible, which in turn allows them to fund and deliver much needed community infrastructure without delay. Of the 36 DCPs where the CIL is being increased, the increase will not eliminate the shortfall in community infrastructure funding in 26 DCPs.

Effects of Exemption on Third Parties

10.  The effect of exempting Amendment GC75 from the usual requirements would mean that third parties would not receive notice of the amendment, be able to make submissions in relation to the Amendment or be heard by a Panel.

Assessment as to whether benefits of exemptions outweigh effects on third parties

11.  I consider that the benefits of exempting myself from sections 17, 18 and 19 of the Act outweigh any effects of the exemption on third parties for the following reasons:

·  Of the 38 DCPs where the amount of the CIL payable is being changed, 29 DCPs already enable the amount of the CIL payable to be varied in specific circumstances including where the amount has been varied through a Governor in Council Order. In these cases, the increased CIL can lawfully be collected and amending these schemes makes the relevant change more transparent.

·  All planning authorities participating in Amendment GC75 support the changes and have provided justification for the increase in the CIL payable, by demonstrating that the current CIL provides a shortfall in the funding of community infrastructure that is directly attributable to new development.

·  The changes to the CIL have been discussed with the infrastructure contributions implementation reference group which was established to provide advice on the new Infrastructure Contributions Plan system. The reference group was comprised of five municipal councils, the Victorian Planning Authority and a number of development and planning industry peak bodies and organisations. There was ‘in principle’ support for the need to increase the CIL amount and to provide for its annual indexation. The increase in the CIL levy payable in the approved DCP will help ensure that an appropriate level of community infrastructure can be delivered to new communities.

DECISION

1.  I have decided to exercise my power to exempt myself from all the requirements of sections 17, 18 and 19 of the Act and the regulations in respect of Amendment GC75 to the Planning Scheme.

REASONS FOR INTERVENTION

2.  I provide the following reasons for my decision to exercise my power under section 20(4) of the Act.

3.  I am satisfied that -

Compliance with any of the requirements of sections 17, 18 and 19 of the Act and the regulations is not warranted because:

·  In most cases the higher CIL payable can already be lawfully collected.

·  All planning authorities participating in Amendment GC75 support the changes and have provided justification for the increase in the CIL payable.

SIGNED BY THE MINISTER

HON RICHARD WYNNE MP

Minister for Planning

Date: 20 October 2017