From 1 February 2021 a new Development Contribution Levy (DCL) came into effect under the Yarra Planning Scheme.

The new DCP levy will apply to development applications for:

a) new additional dwellings; and/or

b) new additional retail, commercial and industrial floor space.

The total levy to be paid will be calculated on the basis of the number of new additional dwellings and/or per square metre increase in retail, commercial or industrial floor space.

Note that the levy consists of two components, a Development Infrastructure Levy (DIL) and a Community Infrastructure Levy (CIL). Either or both of these components may apply depending on the circumstances of a particular development.

The levy will apply to new developments that have a planning permit issued before Monday 1 February 2021 but that that have not had a building permit issued before Monday 1 February 2021.

A building permit must not be issued until evidence has been provided that all applicable components of the DCP levy have either been paid, or are not required. Evidence of payment would normally be in the form of a receipt from the Yarra City Council confirming the payment of the levy for a particular development.

Levy rates for the 2020/21 financial year

Further information on the Yarra DCP is available on the Yarra Council website at City of Yarra

Article: 02/01/2021