Mount Alexander Shire Council is currently experiencing an increase in demand for residential development in growth areas, which can be attributed to population growth. To ensure that this development is matched by appropriate infrastructure and services (such as roads, drainage, community facilities), Council seeks to collect monetary or ‘in-kind’ contributions from developers. ‘In-kind’ contributions are where the developer provides the required infrastructure in lieu of a monetary contribution.
Council uses the ‘voluntary agreement’ approach to development contributions, also known as informal shared funding arrangements. This approach provides an opportunity within the planning system for land owners, Council and other parties to freely negotiate agreements for the provision of infrastructure, at the time a development proposal is considered, or a planning scheme is amended.
Section 173 of the Planning and Environment Act 1987 provides a mechanism for formalising a voluntary agreement; the agreement is usually registered on the title to the land that it affects to ensure that the owner of the land at the time will meet any obligations contained within the agreement.