• VCAT

February 1, 2023

Planning panel not supportive of Monash Council’s proposed subdivision contribution hike.

On the 10th January 2023 the panel released its report on the latest proposed amendment by Monash council to increase the contribution permit applicants must make for public open space to 10%. This is not the first time the panel have rejected councils proposed hike, having previously rejected a similar proposal in 2020 which you can read about here. Although the panel did not support councils proposed 10% hike, they were supportive of a 7.61% contribution.

The current rate of subdivision contributions for public open space is capped at 5% of the unimproved value of the site under the subdivisions act. If approved the new rate will be applicable to all subdivision applications within the municipality and is payable before council issue statement of compliance for the subdivision. Councils rationale for the hike is that the housing supply is increasing which in turn is increasing the demand on public open spaces and parks which council need to pay to upkeep, upgrade and maintain.

The panel concurred with council that an increase was appropriate and that it should apply to both residential and non residential subdivision applications, however the panel was critical of how council had projected the costs of future land acquisition and community infrastructure such as public parks.   

You can read the full panel report here, council must now consider whether they will adopt the recommendation of the panel for a reduced rate than originally sought. This would result in an adjustment to the current amendment proposal or alternatively council could choose to abandon the amendment or let it lapse akin to what happened in 2020. We believe its unlikely council will allow the amendment to lapse this time and will likely continue with the amendment application to the state government in some form.