Planning and Subdivision Fees Review – Oct 2016

Planning and Subdivision Fees Review – October 2016victoria-future

The Victorian Government have released information concerning significant increases to a range of fees in their Planning and Subdivision Fees Review. The stating that council costs to deliver services and fact that successive governments have failed to review fee’s for 12 years have therefor allowed this Victorian Labor Government to increase the many fee’s by approx.150% or more.

The introduction of a new fee structure for dwelling under $10,000 demonstrate lack of any real awareness to costs (I would love a house built for under $10,000) and continues the inefficiency of the department and its administration of regulations to the detriment of the public. Simply can’t believe they think this category square things up. Really?

The following link to proposed fee’s can be found here

Planning and Subdivision Fees Review

A few snap shot review of a few classic segments of planning developments:

Developments – single dwelling development and  also used for extensions and projects like Verandahs, Sheds and garages

  • Up to $100K        Was $239 Proposed $592 Increase $352 or 147% Increase
  • $100K to $500K  Was $490 Proposed $1213 Increase $723 or  147% Increase

Some new levels are introduced. Sneaky new fee’s not discussed.

  • $500K to $1 Million Was $490 Proposed $1310 Increase $820 or 167% Increase
  • $1Million to 2 Million Was $490 Proposed $1408 Increase $918 or 187% Increase

Amendments to Permits had fee such as listed below

  • $0 to $10,000 Nil
  • $10,000 to $100,000 $239
  • $100,000+ $490

Proposed is now a complicated calculation which is sure to cause significant and unnecessary confusion and costs for owners wanting small extensions or additions to a lot which already has a planning permit and therefore requires that permit to be amended. It is unclear what they proposed to charge but it could be classed under schedule attached.

Amend an existing planning permit – 75% of fee applicable to the original permit class plus the difference in fees if the amendment moves the permit into a different class. The lowest fee starts at $1080 but will they charge 75% of this or the original development cost. Even if at lower end the increase is

  • $0 to $10,000             Was $ Nil    Proposed $810 Increase $810
  • $10,000 to $100,000  Was $239  Proposed $810 Increase $571 Increase 239%
  • $100,000+                  Was $490  Proposed $810 Increase $320 Increase 65%

Lack of a community and business opportunity, and therefore critical response, will ensure Labor Government, who have demonstrated no real care for consumer consultation (our company was asked only 2 weeks ago but no indication of proposed fee’s were provided), to smash consumers with this exceptionally unrealistic increase based on their previous and continued incompetence is wrong. Strong words but true.

I do feel sorry for council planning staff, at the coal face, with the negative responses they will need to field over the coming months. Somewhat feel the same for our company who initially have to advise a client’s first then take the negative flak or the cancellation.

Summary,

I was expecting change and my first thoughts were

  1. It was wrong that fee’s were not raised yearly similar to the building & other government department. But why had they not? But rise then by 147% Really?
  2. It is true current fee’s do not cover costs fee’s needed to be raised. But is this the right and responsible way?
  3. It is true significant numbers of time wasting applications are triggered for no real public advantage. Why no real significant change particularly to NIL impact projects cluttering the system.
  4. It is true some fee’s are realistic for some more complicated projects but many are not particularly class 10 projects and small dwelling extensions.
  5. it is also true that the government has such lack of transparency, just look at the infrastructure issues, CFA and rail development for other examples that no reasonable consultation with industry was undertaken to those who deal with the consumer. Either that or our association BDAV have failed us building designers and our clients.

The new fee’s will ensure consumers will continue pay for lack of real planning improvement or desire for improvement which successive governments, Labor or Liberal, have simply failed in their elected duties and the Planning Department who seem to have no grasp on their duty.

If your not happy consult your local member I’m sure they will provide the applicable lip service do not blame the council staff or my staff we don’t make the fees.

We, at The Project Centre hope this information will assist those consumers with understanding some of the associated unseen costs of building within Victoria.