A levy is paid as part of the planning permit application process for developing certain land in metropolitan Melbourne.
Melbourne is growing rapidly, with a projected population of up to 8 million by 2051.
The metropolitan planning levy (MPL) supports the delivery of Plan Melbourne initiatives through the Department of Environment, Land, Water and Planning, and the Victorian Planning Authority.
The MPL is imposed for making a leviable planning permit application for developing certain land in metropolitan Melbourne.
You have to pay the levy if you want to apply for a planning permit to develop land in metropolitan Melbourne where the estimated cost of the development is more than the levy threshold.
From 1 July 2024, the metropolitan planning levy threshold is $1,271,000. The threshold is adjusted by the Consumer Price Index (CPI) on 1 July each year.
If the estimated development cost is more than the threshold, you cannot lodge your planning permit application without a current MPL certificate. An MPL certificate is valid for 180 days after its issue date.
The levy does not apply to an application to amend a planning permit under s72 of the Planning and Environment Act 1987 (the Act), even if the total estimated cost of the development allowed by the amended permit is more than the current threshold.
The levy amount is calculated on the estimated cost of the development for which the planning permit is required. This cost is shown in the planning permit application form, which is also used by the responsible authority to calculate permit application fees.
If your application for a planning permit is to subdivide land, you need to pay the levy if the subdivision involves development works requiring a planning permit and the costs of development exceed the levy threshold. If there are works associated with the subdivision of land that do not require a planning permit, the costs of these works should be excluded from the estimated development costs for levy purposes.
Read more about estimated development costs for land subdivision in Planning Practice Note 82 (Applying the Metropolitan Planning Levy), issued by the Minister for Planning in May 2016.
The levy applies to an application for a planning permit to develop land in metropolitan Melbourne, comprising:
The levy is $1.30 for every $1,000 of the estimated development cost.
If the estimated cost is not a multiple of $1,000, it will be rounded up or down to the nearest $1,000, with the amount rounded up where the cost includes an amount of $500.
The estimated cost of the development to which a permit application relates is $2,356,782. This is rounded up to $2,357,000 to calculate the levy:
$2,357,000 ÷ $1,000 = $2,357.
The metropolitan planning levy is:
($2,357 × $1.30) = $3,064.10.
You apply for a levy certificate by submitting a metropolitan planning levy application. In your application, you need to tell us the estimated cost of the development and provide other information.
We encourage all MPL certificate applicants to engage with the relevant planning authority to ensure that their planning permit application is ready to be lodged prior to applying for an MPL certificate as extensions of time are not available for MPL certificates or revised MPL certificates.
The application form tells you how much levy you need to pay based on the estimated development cost. When you submit your completed application, you must pay the levy by electronic funds transfer.
After we have received your payment and all the information we require, we issue you with a certificate stating the relevant information, including the estimated cost of the development.
If your planning permit application requires a metropolitan planning levy certificate, your application will only be accepted if the estimated cost of development on your certificate is equal to or greater than that stated in your planning permit application.
If the estimated cost of the development increases after you have received your certificate but before you apply for your planning permit, and your certificate has not expired, you can apply for a revised metropolitan planning certificate and pay the additional levy amount.
This additional payment is calculated on the increase in the estimated development cost.
The original estimated cost of the development to which a permit application relates is $2,356,782.
This is rounded up to $2,357,000 for calculating the levy:
$2,357,000 ÷ $1,000 = $2,357.
The metropolitan planning levy is ($2,357 × $1.30) = $3,064.10.
A month after the levy was paid and a certificate issued, but before the planning permit application was lodged, the estimated cost of the development increased by $200,000.
The additional amount of levy payable is:
($200,000 divided by $1,000) × $1.30 = $260.
You apply for a revised metropolitan planning levy certificate by submitting another application form stating the increased estimated cost of the development, with other required information. You then pay the additional levy amount.
A revised MPL certificate expires on the later of 90 days after its issue date or the date on which the original MPL certificate issued expires. An extension of time is not available.
The Commissioner cannot issue you with a revised certificate if you apply for the revised certificate more than 180 days after the issue date of your original certificate.
The Commissioner has no discretion to extend the expiry of any certificate.
The Commissioner can only provide a refund of the levy if:
The Commissioner is satisfied of one or more of the following grounds:
We cannot refund any levy amounts in any other circumstances, including where:
You do not have to keep records for levy purposes, although you may want to keep a copy of your metropolitan planning levy certificate.
The planning or responsible authority must keep each certificate given to them for at least five years.