Development Contributions Plan
When people develop land, it can contribute to the need for new or upgraded infrastructure. A Development Contributions Plan (DCP) is used to collect payments towards the provision of infrastructure triggered by new development.
The payments received assist with the cost of providing roads, drainage, open space and community infrastructure required to accommodate the needs of a growing population. This offsets the contribution paid from rate income.
Approved DCPs are included in the Baw Baw Planning Scheme and are implemented by applying a Development Contributions Plan Overlay and associated schedule to an area.
Development Contribution Plans in Precinct Structure Plan areas
What is a Development Contribution Plan?
A development contribution plan (DCP) is the financial document which accompanies the precinct structure plan (PSP). The DCP sets out the major infrastructure projects identified in the relative precinct structure plan, including the budgeted cost of each project. Each developer within the PSP area is required to contribute financially to the DCP, according to the amount of land they are developing.
How does a DCP work?
Within the DCP each infrastructure project is identified and a budget amount allowed for each project. All the project budget costs are tallied for the relative precinct, to establish the total cost for infrastructure delivery for that precinct.
The developable land within the precinct is also calculated, known as the ‘Net Developable Area’ (NDA).
To establish the price per hectare charge of the DCP, total infrastructure cost is divided by the net developable area. Any developments in a PSP area, must contribute according to the amount of land being developed, to fund the infrastructure required.
Click here to view the Warragul and Drouin Developer Contribution Plans.
Paying DCP Levies
The DCP has been applied as an overlay to all of Baw Baw Shire. This means that all new dwellings, industrial and business developments, and residential subdivisions are subject to a DCP payment.
For more information about DCP Levies, go to Fees and Levies.
For more information, email the Planning Department or call 5626 2411.