Open Space Contribution
The City of Melbourne currently requires a person who proposes to subdivide land located within the City of Melbourne to make a contribution to the council for public open space. Currently the amount (generally determined as a percentage of the site value) of the Open Space Contribution is determined by the council at its discretion.
The City of Melbourne proposes to amend the current Open Space Contribution strategy so that the Open Space Contribution rates are set at between 5% and 8% (the higher rate applying to Melbourne CBD, Southbank and parts of the inner North West of Melbourne) and remove the council's discretion to determine the rate.
Under the amendment the Open Space Contribution rate will be assessed as either a percentage of the site value, a land contribution (meaning that a suitable area of the subdivided land would need to be set aside for use as an open space) or a combination of both.
The amendment was endorsed by the council's Future Melbourne Committee but at present is still in the review phase. If the amendment comes into operation it could result in owners proposing to subdivide land being required to pay an amount equal to 8% of the land value to the council at the time of subdivision . By contrast under the present scheme developers are generally required to pay an amount equal to up to 5% of the land value and this may be reduced by council in its discretion following submissions being made.
For more information about the proposed Open Space Contribution, click here.
From 2015 the suburbs subject to the "off-street" congestion parking levy will more than double. The levy is imposed by the Victorian government on owners of "off street" parking spaces.
The additional suburbs to be brought within the levy zones include; Brunswick, Abbotsford, Carlton, Fitzroy, Parkville, Collingwood, Kensington, North Melbourne, West Melbourne, South Melbourne, Port Melbourne, Albert Park and St Kilda.
A levy of $950 will apply on each car space located in the new levy zone areas. This will result in a marked increase to statutory outgoings payable on typical office buildings located in these areas and increased costs for developers of land subject to planning obligations which impose car parking requirements.
For more information about the congestion levy, click here.