The Municipal Association of Victoria (MAV) has welcomed the State Government’s commencement of a review of council planning fees that could create a fairer system for communities.
The State-set planning fees have not been indexed consistently since 2000, following a review in 1998. The cost to lodge a planning application is far less than the cost it creates for councils to review and implement.
The MAV President, Councillor Bill McArthur said a review had long been called for by the MAV and councils, and would hopefully lead to a long-awaited resolution for councils and communities.
“The planning fees issue is consistently brought to the MAV’s attention at our State Council meetings. A review was a core priority of our Call to Parties ahead of the State Election. We have advocated to the government for a review for many years, and we welcome this positive step forward,” he said.
“Ratepayers are contributing millions of dollars to cover the revenue shortfall facing councils as a result of the failure to index fees.
“The planning system is complex and therefore councils maintain a thorough process for assessing planning applications. Processing applications is time consuming, resource intensive and costly for councils.
“Councils are also increasing time spent on pre-application discussions, consultation, mediation, appeals and government requirements.
“An increase in the application fees is vital as the current fees have not kept pace with council costs. This shortfall has been reflected in council rate increases. We want to see a system that ensures only those requiring a planning application foot the bill, not an entire community.
“As population continues to grow, so do property developments; therefore councils are seeing an increase in planning applications, leading to an increase in workload. However, with the planning fees stagnant, council costs to asses applications are being increasingly subsidised by ratepayers.
“There are some council services where the costs are more fairly borne by users such as animal registrations, waste management charges and council run childcare. We want to see planning fees on a level playing field.
“The review will include a regulatory impact statement process and new fees are expected to commence in the last quarter of 2016.
“We hope the review enables a greater level of cost recovery – taking into account public good and capacity to pay. The review must bridge the gap between costs and cost recovery. This will help reduce pressure on council budgets and ratepayer contributions.
“We would encourage councils to have their say during the submission process.”
