Subdivision Case Study - Murray Road, Ormond

This development was across two sites and involved the removal of two houses, the retention of one house and the construction of three new double storey houses. The development was approved in October 2014 by Glen Eira City Council, construction commenced in September 2015 and concluded in August 2016. This development created four lots in total and because of this a one off financial contribution had to be made to Glen Eira City Council. This contribution was 5% of the total land value before the development commenced. This requirement for a financial contribution applies to all subdivisions in all councils in Victoria where three or more lots are created. Subdivisions that create two lots are exempt from this requirement. The rationale behind the contribution is to ensure council have enough resources to upgrade community infrastructure as demand on that infrastructure increases. As a developer who increases the number of houses in the community through subdivision you must contribute to that cost by way of the contribution.