Metropolitan planning levy

Melbourne is growing rapidly, with a projected population of up to 8 million by 2051. 

The metropolitan planning levy (MPL) supports the delivery of Plan Melbourne initiatives through the Department of Transport and Planning, and the Victorian Planning Authority. 

The levy is imposed for making a leviable planning permit application for developing certain land in metropolitan Melbourne.

What is the levy and who pays it?

You have to pay the levy if you want to apply for a planning permit to develop land in metropolitan Melbourne where the estimated cost of the development is more than the levy threshold.

From 1 July 2024, the levy threshold is $1,271,000. The threshold is adjusted by the Consumer Price Index on 1 July each year.

If the estimated development cost is more than the threshold, you cannot lodge your planning permit application without a current MPL certificate. An MPL certificate is valid for 180 days after its issue date.

The levy does not apply to an application to amend a planning permit under s72 of the Planning and Environment Act 1987 (the Act), even if the total estimated cost of the development allowed by the amended permit is more than the current threshold.

Estimated cost of development

The levy amount is calculated on the estimated cost of the development for which the planning permit is required. This cost is shown in the planning permit application form, which is also used by the responsible authority to calculate permit application fees.

If your application for a planning permit is to subdivide land, you need to pay the levy if the subdivision involves development works requiring a planning permit and the costs of development exceed the levy threshold. If there are works associated with the subdivision of land that do not require a planning permit, the costs of these works should be excluded from the estimated development costs for levy purposes. 

Read more about estimated development costs for land subdivision in Planning Practice Note 82 (Applying the Metropolitan Planning Levy), issued by the Minister for Planning in May 2016.

Affected areas

The levy applies to an application for a planning permit to develop land in metropolitan Melbourne, made up of:

• the area covered by the Banyule, Bayside, Boroondara, Brimbank, Cardinia, Casey, Darebin, Frankston, Glen Eira, Greater Dandenong, Hobsons Bay, Hume, Kingston, Knox, Manningham, Maribyrnong, Maroondah, Melbourne, Melton, Monash, Moonee Valley, Merri-bek (formerly Moreland), Mornington Peninsula, Nillumbik, Port Phillip, Stonnington, Whitehorse, Whittlesea, Wyndham, Yarra and Yarra Ranges planning schemes
• the area within the urban growth boundary in the Mitchell Planning Scheme.

Levy rates

The levy is $1.30 for every $1,000 of the estimated development cost.

If the estimated cost is not a multiple of $1,000, it will be rounded up or down to the nearest $1,000, with the amount rounded up where the cost includes an amount of $500.

Apply for an MPL certificate

You apply for an MPL certificate by submitting an MPL application. In your application, you need to tell us the estimated cost of the development and provide other information.

We encourage all MPL certificate applicants to engage with the relevant planning authority to ensure that their planning permit application is ready to be lodged prior to applying for an MPL certificate as extensions of time are strictly not available for MPL certificates or revised MPL certificates. 

The application form tells you how much levy you need to pay based on the estimated development cost. When you submit your completed application, you must pay the levy by electronic funds transfer.

After we have received your payment and all the information we require, we issue you with an MPL certificate stating the relevant information, including the estimated cost of the development.

Increased development cost

If your planning permit application requires an MPL certificate, your application will only be accepted if the estimated cost of development on your MPL certificate is equal to or greater than that stated in your planning permit application.

If the estimated cost of the development increases after you have received your MPL certificate but before you apply for your planning permit, and your MPL certificate has not expired, you can apply for a revised MPL certificate and pay the additional levy amount.

This additional payment is calculated on the increase in the estimated development cost.

Revised MPL certificate

You apply for a revised MPL certificate by submitting another application form stating the increased estimated cost of the development, with other required information. You then pay the additional levy amount.

A revised MPL certificate expires on the later of 90 days after its issue date or the date on which the original MPL certificate expires. An extension of time is strictly not available.

The Commissioner cannot issue you with a revised MPL certificate if you apply for the revised MPL certificate more than 180 days after the issue date of your original MPL certificate.

The Commissioner has no discretion to extend the expiry of any MPL certificate.  

More about MPL certificates

Refund of the levy

The Commissioner can only provide a refund of the levy if:

• the request is made in writing no later than 30 days after the expiry of the MPL certificate or revised MPL certificate if there is one
• the leviable planning permit application in respect of which the levy was paid has not been made
• the Commissioner is satisfied of one or more of the following grounds: 
  • There has been a mathematical error in calculating the amount of the levy in relation to the estimated cost of the development stated in the application for the MPL certificate.
  • The applicant for the leviable planning permit application died before the application was made, and no other person is proceeding with the application.
  • The relevant planning scheme was amended before the leviable planning permit application was made and because of the amendment, the authority must refuse to grant the permit application.

We cannot refund any levy amounts in any other circumstances, including where:

• the estimated cost of the development decreases
• you do not lodge your planning permit application
• your application lapses, is refused or is withdrawn
• after applying for your planning permit, the threshold increases
• your planning permit application is granted but subsequently cancelled.

Keeping records

You do not have to keep records for levy purposes, although you may want to keep a copy of your MPL certificate.

The planning or responsible authority must keep each MPL certificate given to them for at least 5 years.