Politics
Port Melbourne Council Approves New Infrastructure Levy for Property Developments
The measure sets new contribution rates for property developments that will shape costs for water, roads and parks used by Port Melbourne residents.
How we reported this
The Port Melbourne City Council voted 6-3 on July 7 to adopt the Infrastructure Contribution Levy, which requires new residential and commercial projects to pay fees based on floor area and location within designated zones.
The vote came after the council reviewed its 2026 capital works schedule, which lists 14 priority projects including upgrades to stormwater drains along the waterfront and resurfacing of 12 kilometres of local streets. Council documents show the levy replaces an earlier voluntary contribution system that collected an average of $420,000 per year.
Impact on Daily Services and Costs
Under the policy, developers of buildings over 500 square metres must pay $85 per square metre for road and drainage works, with the funds directed to the city's maintenance budget. Local advocates note this replaces reliance on general rates, which currently cover 78 percent of road repairs according to the 2025 financial statements. Residents in areas such as Beacon Cove and the Fishermans Bend fringe will see the first effects when new apartment blocks begin construction next year, as the contributions are expected to support expanded bus stop shelters and footpath widening along Bay Street.
Policy analysts say the change means households may face smaller annual rate increases for infrastructure, because the levy targets growth rather than spreading costs across all ratepayers. The legislation states that 40 percent of collected funds must go to open-space improvements, such as playground equipment at Edwards Park, while the remainder supports water management systems that reduce flooding on streets near the port terminals.
The council's fiscal impact statement projects the levy will generate $1.2 million in its first full year of operation. This figure comes from estimates of 14,000 square metres of new development applications already lodged with the planning department.
Implementation begins on August 1, when the city will publish updated contribution schedules and hold two public information sessions at the Port Melbourne Town Hall. Developers must include levy calculations in all permit applications submitted after that date, with payments due at the time of building approval.