FAQs

A PSP is a long-term strategic plan for urban development. It describes how the land is expected to be developed including how and where all services are planned to support development.

 The PSP sets out:

• Land use and development – where housing, roads, local parks, and community facilities will go,
• Infrastructure planning – the services needed and how they will be delivered,
• Vision and certainty – giving developers, landowners, and the community confidence about future growth,

The PSP is informed by background documents and policies to inform and direct the future planning and development of the precinct.

The Warragul and Drouin PSPs were prepared by the Victorian Planning Authority (formerly the Metropolitan Planning Authority) in 2014. Together, they will deliver around 20,000 new homes and accommodate approximately 50,000 people across a combined 1856 hectares.

The PSP ensures growth is well-planned, sustainable, and supported by essential infrastructure.

It is an incorporated statutory planning document implemented via a Development Contributions Plan Overlay (DCPO) which identifies, describes and costs the infrastructure required to be provided and the development infrastructure levy and community infrastructure levy payable.  

It identifies:

• Identifies the area of land it applies to,
• The infrastructure projects funded,
• How contributions are calculated and shared,

The Warragul and Drouin DCPs fund major projects such as roads, intersections, drainage, community facilities, and open spaces.

DCP levies are not a full cost recovery model and contributions and do not fully fund all projects. 

Two levies apply:

• Development Infrastructure Levy (DIL)
• Community Infrastructure Levy (CIL)

The DIL is a levy that developers pay under a Development Contributions Plan (DCP) to fund essential infrastructure such as:

• Roads and intersections
• Construction of active open space sports reserves 
• Drainage systems
• Maternal and child health centres
• Kindergartens
• Land acquisitions

The levy is uncapped and calculated per net developable hectare, payable when land is subdivided and developed.

Clause 45.06 – Development Contributions Plan Overlay as a per net developable hectare rate.

The Community Infrastructure Levy (CIL) is a charge/levy that is required by a Development Contributions Plan and is calculated on a per dwelling basis, however the levy cannot exceed the cap set via Section 46(L)(2) of the Planning and Environment Act 1987. 

The Community Infrastructure Levy is a contribution towards community infrastructure and payment must be made before the date of issue of a Building Permit.

The CIL is used for buildings or facilities that have a community social purposes such as:

• Sporting pavilions
• Library
• Community centres without maternal child and health, kinder

• All development infrastructure contributions are payable on the net developable area (NDA) of land.

• The NDA is the total precinct area minus the land required for community and educational facilities, open space and encumbered land. 

• NDA includes any land for lots, housing and employment buildings, all local streets and any small parks defined at subdivision stage.

• Net Developable Hectare (NDA) is the demand unit for the DCP.

• Designs and cost estimates are prepared for each project using: 

• Functional layout plans for roads and transport

• Concept plans for community facilities and sports reserves

• Project cost sheets detailing materials, estimates, and contingencies

• Total cost of all infrastructure projects is then divided by the net developable area, resulting in a DIL rate per developable hectare.

Landowners who subdivide or develop land must pay before finalising subdivision or development.

If landowners do not develop or subdivide, or if their land is already developed, they do not need to make a payment.

• Building or extending a house is exempt from DIL

• New homes may be required to pay the Community Infrastructure Levy (CIL). 
• Sometimes developers may pay the CIL on behalf of future residents, otherwise it is collected under the provisions of the Building Act before a Certificate of Occupancy is issued for a dwelling.

The DIL rate generally increases every year because Council is required to update the DCP project costs which is subject to land valuations and annual indexation and CPI.

It is a requirement for Council to do this and if not adjusted, funding shortfalls could delay or stall infrastructure delivery.

The DIL rates can be found in the Schedule 2 and 3 to Clause 45.06 Development Contributions Plan Overlay. 

Rates are indexed and updated every year, they can be found DCP Levy.

As part of the review, the levy is expected to increase because the revised designs and updated land and construction costs mean higher Development Infrastructure Levy (DIL) rates.

If the development infrastructure levy is not increased, the funding will need to come from other funding sources such as Council general revenue. This could compromise delivery of Council services provided to the community and a delay to important projects planned for in Council’s capital works program.

As development is already well underway in Warragul and Drouin, it is important that the correct type of infrastructure is being delivered in a timely manner to ensure that new housing can meet the needs of the community and continue to be delivered.

• Engage stakeholders: Council, agencies, and landowners
  
• Transport, drainage, and community infrastructure projects identified in PSP/DCPs but not yet delivered.
• Update technical assessments for transport, drainage, and community & recreation infrastructure.
• Revise concept designs for key infrastructure such as arterial road intersections.
• Incorporate new technical information to support a Planning Scheme Amendment.
• Address implementation issues, update project costs and delivery arrangements, and correct errors identified over the past five years.
• The review will primarily focus on the DCP infrastructure projects and funding, however it will include consequential changes to the PSPs.

• Project consultants (transport, population forecasts, community infrastructure, land valuations).

• Landowners and developers (consultants).

State Government agencies:

• Department of Transport and Planning (DTP)
• Victorian Planning Authority (VPA)
• Melbourne Water
• West Gippsland CMA

The review will ensure infrastructure is delivered to meet community needs. 

Landowners and developers will be invited to provide input during the process.

The preparation of functional layout plans and concept plans may require land and transport projects to be refined. For some landowners this may result in changes to the size and location of transport and drainage assets across the PSP area which may result in an increase or decrease in land required for drainage and transport assets.

Council will make the existing community and recreation assets identified in the PSP area work harder to eliminate the need for the additional assets in the area. This will ensure that all landowners will continue to have a developable area similar to that identified in the original DCP.

No. Existing permits remain valid.

If you have a current planning permit that has not yet been acted upon, Council invites you to discuss options.

Yes. Council funds infrastructure projects across the municipality including in the PSP areas subject to annual budgets.

The DCP levies collected are a contribution and they will not fully fund all the infrastructure projects.

Council uses technical and forecasting reports to assess current and future needs based on population growth and development patterns. 

This ensures infrastructure planning meets long-term requirements.

Undertaking a review of both DCPs will deliver a number of benefits:

• Resolving key issues that have been slowing development progress, enabling smoother delivery of projects.
  
• Providing opportunities for community and developer input, ensuring transparency and collaboration.
• Improving Council’s internal processes for implementing DCPs, leading to more efficient outcomes.
• Correcting basic document errors for accuracy and clarity.

Yes. 

DCPO1 is also under review and is separate from this project. The Strategic Planning team are leading this project.

• Information session – open public information session will provide details about the project.  
• Contact - Interested parties can contact Officers to discuss the project.
• Formal Notification - Owners and occupiers of affected properties will be notified and can make submissions during the planning scheme amendment process.