Media Release


Home Buyers Could Benefit From Cap on Local Government Charges



Home buyers in Victoria could benefit from new State legislation which caps and standardises charges Councils can add to the cost of developments, the Urban Development Institute of Australia (UDIA) said today.


Tony De Domenico Executive Director UDIA Victoria

Executive Director of the UDIA Victoria, Tony De Domenico said, "Limiting the development charges on projects stopped Councils from gold plating infrastructure such as lamp posts, where charges can vary from $800 to $2,500, with the home buyer footing the extra bill.

"There are also cases where Councils can add EXTRAS when there is an opened ended system of what funds can be used for, by negotiating extra amounts on all types of infrastructure as part of the permit granting process."

Mr De Domenico said, by capping the development charges to $268,000 per hectare (15 residences) in metropolitan areas and listing how the money can be spent means a more open and transparent system.

These new arrangements offer certainty and consistency and remove red tape which eventually makes it easier to provide more affordable housing, Mr De Domenico said.

Media Enquiries:
Ron Smith, Corporate Media Communications, UDIA Victoria - Mobile: 0417 329 201