The Victorian government overhauling how property developers contribute to local infrastructure.

Victoria's premier says the way property developers contribute money to help pay for things like new roads, schools, parks and transport needs to be reformed. At the moment, 43 out of state's 79 local councils collect developer contributions. But they all do it in a different way - the Victorian government says there are 133 collection schemes. “Sometimes it's paid to local councils. Sometimes its paid to the state government, it’s a system that whilst it brings benefits to some communities, it doesn't bring benefits to all communities. It’s a system that's complex, inequitable and just not fair.” A new state-wide program will be developed with industry, and a pilot will be run for the first 10 activity centres proposed in Melbourne. The first contributions won't be made until 2027. 50 of these so-called activity centres are planned - they'll see new apartments being built around train stations and tram stops in established suburbs. Industry group master builders says there's been too much confusion in the past, but it wants to ensure the new system provides value, that money is tracked to ensure it doesn't end up in general revenue, and for the payment to be required at the end of the build - rather than the start. At a time when governments are trying to encourage more houses and apartments to be built, the opposition is concerned this could have the opposite effect. "Jacinta Allan’s housing plan does not offer a head start for all Victorians, it offers expensive apartments and it offers new taxes.” The state government has just announced a 12 month pause on stamp duty for off the plan builds - buyers will be hoping any additional costs from this latest scheme don't counteract those savings. “The system at the moment is so complex it can actually hold projects up, which is a cost to developers” the state government is also planning to give 150 million from existing developer funds to seven suburbs on Melbourne’s fringe.