Politics
South Melbourne Mayor Outlines October 2026 Rollout for Revised Local Infrastructure Contribution Scheme
Ratepayers across South Melbourne will receive updated notices for the scheme beginning with the October 2026 billing cycle.
How we reported this
The South Melbourne mayor has released the implementation schedule for the Revised Local Infrastructure Contribution Scheme, which applies to all 12,500 rateable properties in the municipality. The first adjustments will appear on notices issued on 1 October 2026 and will cover contributions toward road resurfacing and drainage works in the Emerald Hill and Clarendon Street precincts.
Local government budget documents released in May 2026 show that the scheme replaces the previous flat contribution model with a tiered structure based on property value bands. The change follows a council resolution passed on 12 June 2026 that requires phased collection over two financial years to align with scheduled capital projects.
Changes to Household and Business Payments
Under the new bands, properties valued between $800,000 and $1.2 million will pay an additional $38 per quarter starting October 2026. Properties above $1.2 million will incur an extra $72 per quarter from the same date. Small businesses in the York Street commercial strip will see the levy applied to their existing rates notices beginning in the first quarter of 2027.
The council budget papers list $1.45 million in projected revenue from the scheme in the 2026-2027 financial year, allocated specifically to replace 4.2 kilometres of ageing stormwater pipes and to resurface three intersections identified in the 2025 asset audit.
Remaining Phases and Public Notifications
The second phase of the scheme begins on 1 April 2027 and will incorporate an annual indexation factor of 2.3 percent tied to construction cost data published by the local government statistics unit. Residents will receive a single explanatory leaflet with their October 2026 notice that details the exact amount due and the projects it will fund.
Council staff will hold two information sessions at the South Melbourne Town Hall on 15 and 22 August 2026 to answer questions about individual assessments. The full schedule of works funded by the scheme is expected to conclude in December 2028 according to the capital works program published alongside the May budget.