Darebin Council: development levy replacement delayed by “costly” process
A council in Melbourne’s north has blamed a “complicated” State Government process for the delay of a plan to tax developers on their buildings.
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DELAYS in replacing an expired development levy are due to a “complicated” and “costly” State Government process, Darebin Council says.
But the Darebin Ratepayers Association is concerned the delays in putting the scheme together are costing the council millions.
COUNCIL LOSES MILLIONS ON LAPSED LEVY
In April last year, the Leader revealed the development levy had lapsed in 2014, costing millions in lost revenue.
It had collected more than $8 million since its creation in 2004, which was used to fund hundreds of projects.
The council ordered a draft replacement policy in 2014 but never voted to adopt it.
Last year, councillors voted to spend $350,000 across two years to draft a new replacement policy, which wouldn’t come into affect until 2020.
It spent $200,000 on consultants in the 2017-18 financial year.
Darebin Mayor Kim Le Cerf said other councils, such as Moreland and Yarra, spent years developing their own plans.
She said the State Government process “protects the development industry and burdens ratepayers” by making the process too complicated.
Cr Le Cerf said the councils work so far included population forecasting, preparation for planning scheme amendments and learning the best approach from other councils.
Darebin Ratepayers Association president Anne Laver said more delays meant the scheme was costing the council millions.
“It means every development person is getting away with not paying this levy,” she said.
Ms Laver said she hoped the association would get a chance to provide input on the scheme and related planning amendments, including requirements for better design and green spaces.
Department of Planning spokesman Michael Pollock said councils were responsible for the effectiveness and forward planning of the schemes and were supported by guidelines from the department.
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