Infrastructure Recovery Charge

Calculating the Charge

The charge is based on a percentage of ‘development value’.

How the 'development value' is calculated depends on the nature of the development. Development value refers to both the building and subdivision processes. With respect to building work, 'development value' is the sum of the site value at the time of development, and the amount that is the cost of the building work for the development.

In the instance of subdivision, 'development value' is the sum of both the amount that is the estimated site value of the land that is to be subdivided and the estimated cost of building work.

For example, the site value of the land may be $250,000 and the construction cost may be $300,000 (giving a development value of $550,000). Within the VicUrban Revitalising Central Dandenong declared project area, where the charge is 5% of development value, the IRC would be $27,500. (The IRC is payable on the TOTAL development value not just the portion in excess of $265,583)

The charge in the central Dandenong declared project area is 5% of the ‘development value’.

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Dandenong Declared Area Council Presentation (opens Powerpoint, 1.90MB)