Levy land cost threat

Alex de Vos
Land prices will rise further beyond the reach of Surf Coast residents under a council plan to slug developers 10 per cent the value of their land, a lobby group has warned.
Urban Development Institute of Australia executive director Tony De Domeneco said the charge would push up the cost of real estate, pricing potential property owners out of Torquay and Jan Juc.
Council proposes raising its “development contributions plan” to 10 per cent for Torquay, Jan Juc and Winchelsea to pay for open space, roads and community facilities.
Average residential allotment prices in Torquay and Jan Juc would rise around $20,000 to $30,000 if developers passed on the hike in full. The shire’s planning scheme, Amendment C57, would sting developers “elsewhere in the municipality” five per cent.
Mr De Domeneco slammed the proposal.
“It’s usually a requirement for public open space but for Surf Coast Shire to double the contributions in certain areas and not others seems to be unusual,” he said
“It’s huge and it will mean property prices will go up and only the privileged will be able to enjoy the beauties of the Surf Coast. The people demand infrastructure and they (Surf Coast Shire) ought to be providing infrastructure first.
“It’s council raising revenue for the sake of raising revenue.”
Surf Coast Community and Ratepayers Association president Spencer Leighton cautiously welcomed the shire’s tax hike.
“We’d be in favour of it as long as it’s used for real open space,” Mr Leighton said.
“I think developers get away without providing the open space and Torquay is terribly short of ovals – if that money is used for that purpose then it’s all well and good.”
The amendment, posted on Department of Sustainable and Environment’s website, will “enable the timely provision of infrastructure to service this growing population”.
“It is necessary…to require an appropriate level of contributions from new development that will benefit from the provision of the infrastructure,” the amendment said.