Victoria Property, Australia

[Curiousparty]

$3800 out of $500,000 is less than 1%.

"The $900 levy, and a separate proposed open space contribution, would amount to $3800 on a unit worth $500,000, the council said."

Melbourne slammed for vote on $900 apartment levy
Michael Bleby
363 words
14 Aug 2014
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
The City of Melbourne wants to levy a $900 charge on each apartment in developments approved from the start of next month, irrespective of when their applications were lodged.

The city council resolved on Tuesday to ask Planning Minister Matthew Guy to "immediately" introduce the levy so it applies to the 5260 apartments under consideration for approval. They are under a third of the 17,257 in the development pipeline in central Melbourne.

"For those applications which are currently in the pipeline – they've been lodged – if the minister were to follow this advice and the permit was issued on September 2, that would be captured and the very modest $900 developer contribution would come to the city of Melbourne," Councillor Stephen Mayne said at the meeting.

The City estimates the 25,210 people living inside the so-called Hoddle Grid of the central business district will grow by another 14,363 by 2031. To maintain the city's open space ratio, another 3972 square metres of public infrastructure is needed. The $900 levy, and a separate proposed open space contribution, would amount to $3800 on a unit worth $500,000, the council said.

The Property Council of Australia slammed the proposal, warning it would make housing more expensive for singles, families and retirees and could send investment elsewhere.

"While bricks and mortar may not move – investment does," the council's Victorian executive director Jennifer Cunich said on Wednesday. "If the ­feasibility of a development does not stack up, it simply won't happen. That means less construction jobs, less retail activity and lower overall tax revenue."

Ms Cunich also criticised the city for not consulting with it before formalising the proposal, first revealed by The Australian Financial Review in April.

In May Mr Guy introduced a ­standard infrastructure levy of $4500 per dwelling in designated growth areas, but is unlikely to oppose the move and it may not happen as quickly as the city hoped.

"He's happy to have a look at it but would like to see some consultation with the development industry and the community," a spokeswoman said.


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