Development Contributions

Development contributions are payments made by the applicant of new development that play an important role in delivering critical infrastructure to new and growing communities. Infrastructure like roads, intersections or shared paths. Within the planning system, the Planning and Environment Act 1987 provides three ways by which development contributions can be collected. These are:

• Development Contributions Plans (DCPs);
• Conditions on planning permits; and
• Section 173 Agreements.

Council uses the Section 173 Agreements approach to collect development contributions.

Section 173 of the Planning and Environment Act 1987 is the legal document that allows for Section 173 agreements to be created. The agreement is drafted by legal experts and will detail the information that is needed to make sure payments are made at a time agreed upon by Council and the developer.

Mount Alexander Shire Council is experiencing an increase in demand for residential development in growth areas, because of population growth. To ensure that this new residential development is matched with the infrastructure and services (such as roads, drainage, community facilities) that future residents will need, Council seeks to collect 'cash' or ‘in-kind’ development contributions from developers.

'Cash' contributions are where the developer pays cash according to a per lot rate.
'In-kind’ contributions are where the developer chooses to construct the infrastructure themselves instead of paying cash.

An Infrastructure Plan gives Council and our development community certainty as to what the critical infrastructure needs are for our growing communities. It identifies which infrastructure projects will be required and how much they will cost.

An Infrastructure Plan includes the per lot development contribution rate that applies to development within the infrastructure plan area.

You can view our completed and in-progress Infrastructure Plans by clicking on the links below.

- Campbells Creek South
- Diamond Gully
- Harcourt Infrastructure Plan (in progress)

Council has an adopted policy on how it goes about collecting development contributions. You can view the policy by following the below link:

Council's Development Contribution Policy