Darebin Council plans new development levy — but it could take years to come into effect

DAREBIN Council is planning a new tax on developers — but the council might not see a cent until 2020, and the plan would cost $350,000 in consulting fees.

A Large crane is erected at a construction site on Plenty Road in Preston.

DEVELOPERS will be hit with a new tax in Darebin — but the council might not see a cent until 2020.

Darebin Council set aside money in its draft Budget for a new development contributions plan, which would impose a levy on all fresh development in the municipality.

Darebin Council misses out on millions due to failure to replace developer levy scheme

The old plan, abandoned in 2014, netted more than $8 million, with the money going to parks, roads and other public works.

The council will spend $350,000 on consulting fees over two financial years to write a draft replacement plan.

Under this timeline, any new plan would likely not come into effect until 2020 — the last year of the council’s four-year term.

The plan would require approval by the planning minister.

Mayor Kim Le Cerf said a new plan would “ensure developers contribute their fair share to the infrastructure required to meet the needs of our rapidly growing population”.

But Darebin Appropriate Development Association spokeswoman Maria Poletti urged the council to act faster.

“The time frame is not acceptable given Darebin has already missed the peak development period for collecting developer contributions and consequently lost millions from the budget,” she said.

Ms Poletti said the council’s previous draft replacement plan, published in 2014, “should be dusted off and used as a starting point to save money and more importantly time in collecting much needed funds”.

The council’s original developer contributions plan collected $8.19 million from hundreds of different projects over 10 years.

When the plan expired in 2014, the council ordered a draft replacement plan, but never voted to adopt it — despite its own report warning rapid population growth would stretch resources to the limit.

Developers building since July 2014 were not subject to the levy.

Councillors will vote on Monday night on whether to commit money towards a new plan.