General

• What is the Melbourne Planning Scheme?

• The Melbourne Planning Scheme is a public document that sets out the way land can be used and developed in the municipality. It zones land for different uses and applies overlays to properties or precincts to manage growth and change.

• What is a Planning Scheme amendment?

• The Melbourne Planning Scheme is a living document that is regularly updated to reflect evolving priorities for and knowledge about the city. Changes to the Scheme are called amendments and the amendment process is set out in the Planning and Environment Act 1987 (the Act).

  An amendment may involve a change to a planning scheme map (for example, adding a new overlay), a change to the written part of the scheme (adding a new zone schedule), or both.

  Generally, amendments to the planning scheme change the way land can be used or developed and can also change the basis for making planning decisions in the future. Unless the Minister for Planning deems, a planning scheme amendment generally involves consultation with affected parties, through a formal exhibition.

  During formal exhibition, community members and stakeholders can make submissions in response to the proposed Amendment.

  The submissions will be reported to Council’s Future Melbourne Committee.

  If Council cannot resolve matters raised by submitters, an independent planning panel will hear arguments for or against the proposed changes to the Melbourne Planning Scheme.

• ​What are zones?

• The Melbourne Planning Scheme zones land within the municipality for particular uses, for example residential, industrial, commercial or other. Each zone has a purpose and set of requirements.
  

• ​What are overlays and schedules?

• Within the Melbourne Planning Scheme, specific sites or areas may also be covered by one or more overlays. An overlay indicates to property owners, developers and statutory authorities additional information about a parcel of land (such as build form controls, heritage significance, environmental sensitivity, parking requirements, development contributions or flooding).
  

  Many overlays have schedules (for example, DDO75) to specify local objectives and requirements. They are generally in place to protect special attributes of the place or guide the design of proposed buildings.

• ​How does this Amendment relate to the Municipal Planning Strategy?

• Macaulay Amendment C417 includes updates to the Macaulay local area section of our Municipal Planning Strategy. The Municipal Planning Strategy sets the vision for certain areas of our municipality and forms part of the Melbourne Planning Scheme.
  

  The proposed updated Macaulay local policy aligns with the Council-endorsed Structure Plan and the Council-endorsed City Special Plan and sets out in the Melbourne Planning Scheme the vision and strategies for the area.

  Updates to the other local area sections of our Municipal Planning Strategy will be progressed through Amendment C432, which will be exhibited from 8 August until 16 September 2024.
  

• What does rezoning mean for my business or land?

• Most sites in Macaulay are currently located within the Mixed-Use Zone (MUZ). This has resulted in predominantly residential development. The proposed rezoning will help to ensure that Macaulay develops as a true mixed-use neighbourhood, through the application of the Special Use Zone Schedule 8. The Special Use Zone Schedule 8 also identifies the need for new residential developments to contribute towards the provision of affordable housing and a discretionary rate of 6% is contained in the proposed Macaulay local policy.

• ​What is consolidated parking?

• Amendment C417 defines a Consolidated Car Park as a car park that:
  

  • is held in single ownership
  • is available for shared usage by a catchment beyond the site of the car park and
  • is managed in accordance with a car parking plan that is to Council’s satisfaction.

  
  Discouraging the provision of on-site car parking on a site-by-site basis and encouraging consolidated, publicly available carparks aims to encourage a travel mode shift toward sustainable transport options.

• Why delete and introduce new Design and Development Overlays (DDO)?

• The current Design and Development Overlay (DDO63) covers the entire Macaulay area.

  The Macaulay Structure Plan identifies four distinct sub-precincts: Boundary, Melrose, Chelmsford and Stubbs. New Floor Area Ratio (FAR) and built form controls will ensure that development responds to the vision and design objectives for each sub-precinct.

  The application of precinct specific Schedules to the DDO (DDO75 Boundary precinct, DDO76 Melrose precinct, DDO77 Chelmsford precinct and DDO78 Stubbs precinct) will ensure built form outcomes are aligned with the preferred character of each precinct and ensure developments provide maximum levels of amenity for future occupants.

• What is floor area ratio (FAR)?

• A floor area ratio (FAR) is a type of planning control that sets a specific amount of development that can occur on a site. The floor area ratio is the ratio of a new building’s total floor area in relation to the size of the site it is being built on.

  When combined with other built form controls, a FAR allows for variation in the height and shape of buildings. This will help to ensure that new development is more responsive to its site and the characteristics of an area.

  The diagrams below explain the concept of floor area ratios and how it can result in different building types. For example, a floor area ratio of 4:1 allows for a total floor area up to four times the size of the site itself. This could be up to four storeys if 100 per cent of the site is developed or eight storeys if only half the site is developed. For larger sites, a floor area ratio also enables the delivery of new streets and open spaces.

  Some of the benefits of floor area ratios are that they:

  • provide greater certainty on future population and job growth to ensure that supporting infrastructure meets the needs of residents and workers
  • enable the delivery of streets and open spaces on larger sites
  • help deliver a range of building typologies.

  
  

  Floor area ration (FAR) diagram (PDF 119 KB)
  

• What is an urban renewal precinct?

• Urban renewal precincts are often former industrial areas that are no longer being used for their original purpose and could benefit from redevelopment.

  By revitalising underutilised spaces with affordable housing, open green spaces and busy shopping precincts, urban renewal precincts are transformed into places people want to live, work and invest.

• Will Macaulay have infrastructure such as new roads and public open space?

• The timely delivery of key enabling infrastructure, utilities and community services will be critical to supporting the intensification of Macaulay.

  Several elements of Amendment C417 will support the provision of important infrastructure in Macaulay:

  • Macaulay – Stubbs and Boundary Precincts – New and Widened Streets and Laneways – Alignments and Cross-Sections, June 2022
  • Macaulay Urban Renewal Precinct Development Contributions Plan, May 2022
  • Changes to Schedule 2 to the Development Contributions Plan Overlay (DCPO2) to include development contributions rates for Residential, Commercial and Retail development.

Macaulay Structure Plan

• What did we hear through the Macaulay Structure Plan consultation in 2019 and 2020?

• The 2021 Structure Plan was informed by feedback during two phases of consultation on the 2019 Discussion Paper (PDF 15.18 MB) and 2020 Draft Structure Plan (PDF 16.9 MB). The community was encouraged to have their say via an online survey, virtual workshops, information sessions and written submissions. The engagement summary report is available on Participate Melbourne.

  Through previous consultation to inform the Macaulay Structure Plan, we heard participants want Macaulay to be:

  • a place prepared for the future: ensuring our housing, transport and employment opportunities can support a growing population.
  • a nice place to live: ensuring Macaulay is a place we can live, work, play and relax, ensuring employment opportunities and housing and transport options that allow for good quality of life.
  • a place for community: creating welcoming, accessible and inclusive community spaces that feature green spaces, sports facilities and community building to encourage social connection.

  We also heard:

  • Open and green spaces are highly valued, existing spaces should be protected and enhanced while looking for opportunities for new ones to be created.
  • Cycling and walking should be prioritised in the area, including separated bike paths and wider footpaths.
  • Future building development will be multi-storey, but shouldn’t be designed out of character with the area or overshadow existing properties, parks and paths.
  • As the area already suffers from traffic congestion, future actions aimed at easing this would be valuable.
  • Amenities need to keep pace with population growth, including enough parking space, open space, schools and community services as well as retail and hospitality.
• What is the difference between this Amendment and the Macaulay Structure Plan?

• The Macaulay Structure Plan is Council’s vision for the area.

  Planning Scheme Amendment C417 proposes to make changes to the Melbourne Planning Scheme to implement the land use and development objectives of the Structure Plan, to help achieve the vision for the area.

  If the Amendment is ultimately approved by the Minister for Planning, it means that future planning permit applications will be assessed against those new controls in the Melbourne Planning Scheme.

• Why have some things proposed in the Structure Plan not been included in this Amendment?

• Once endorsed by Council’s Future Melbourne Committee in June 2022, the draft Amendment was submitted to the Minister for Planning for ‘authorisation’. This authorisation from the Minster represents a green light from the State Government for the City of Melbourne to commence the planning scheme amendment process by formally consulting with the community on the proposed amendment.

  The Department of Transport and Planning, under delegation from the Minister for Planning, issued its authorisation with a set of conditions, which included a number of changes to the proposed controls, including the removal of

  • mandatory provision of affordable housing (making it voluntary instead) and
  • permit triggers for a change of use in flood affected areas.

  
  View the conditional letter of authorisation.

Development contributions and the funding of drainage and flood mitigation infrastructure

• What is proposed under Amendment C417 and what is the current status of development contributions in Macaulay?

• Macaulay Amendment C417 proposes to introduce a permanent Development Contribution Plan Overlay (DCPO) and the Macaulay Urban Renewal Precinct Development Contributions Plan (DCP) Incorporated Document into the Melbourne Planning Scheme.

  Under the DCPO, developers are required to contribute funds towards essential infrastructure, including new community facilities, street and open space projects and other infrastructure required to support new development in Macaulay.

  For the financial year 2024/2025, the levies proposed under the permanent controls are:

  • Development Infrastructure Levy - Residential (per dwelling): $12,929.56
  • Development Infrastructure Levy - Commercial (per sqm gross leasable floorspace): $198.68
  • Development Infrastructure Levy - Retail (per sqm gross leasable floorspace): $233.32
  • Community Infrastructure Levy - Residential (per dwelling): $1,450.00

  
  An interim DCPO2, was introduced to Macaulay in 2017. The interim DCPO2 expires 31 July 2026. The current rates of contribution for the financial year indexed 2024/2025 are:

  • Development Infrastructure Levy - Residential (per dwelling): $21,559
  • Development Infrastructure Levy - Commercial (per sqm gross leasable floorspace): $244
  • Development Infrastructure Levy - Retail (per sqm gross leasable floorspace): $203
  • Community Infrastructure Levy - Residential (per dwelling): N/A
• Why are the contribution levies different between those proposed in Amendment C417 and the Interim Macaulay DCPO2?

• The interim DCPO2 collects contributions at a higher rate than the proposed permanent Macaulay DCPO2. The proposed Macaulay DCP generally excludes drainage and flood mitigation infrastructure projects. In preparing the permanent DCP, a developer contribution to the drainage and flood mitigation infrastructure was proposed to be included in a separate funding mechanism, the Urban Renewal Cost Recovery Scheme (URCRS), administered by Melbourne Water.

  The interim DCPO2 does not allocate funding to individual projects, and therefore, a contribution to drainage and flood mitigation projects is assumed under the interim DCPO2 and not the permanent DCPO2. The proposed permanent DCPO2 is supported by a DCP document that allocates funding to identified projects.

• What is the Urban Renewal Cost Recovery Scheme (URCRS) and is it still proposed?

• The Urban Renewal Cost Recovery Scheme (URCRS) was proposed to be administered over the Arden and Macaulay urban renewal precincts as a means of recovering costs for the required drainage and flood mitigation infrastructure. Macaulay Amendment C417 and Arden Amendment C407 are the primary implementation pathways for the Macaulay Structure Plan 2021 and the Arden Structure Plan - July 2022, respectively. Both amendments include a DCP document. The DCPs were prepared assuming the URCRS would recover costs for the required drainage and flood mitigation infrastructure in both precincts.

  Melbourne Water was the agency proposed to be responsible for administering the URCRS. The planning controls approved and gazetted into the Melbourne Planning Scheme through Arden Amendment C407 Arden did not provide the referral mechanisms required to enable the URCRS approach. The URCRS is now considered an unfeasible means of cost recovery for drainage and flood mitigation infrastructure. As Arden and Macaulay form part of the same catchment for flood and drainage purposes, the URCRS cannot be applied to Macaulay.

  Melbourne Water is working with the Department of Transport and Planning and the City of Melbourne to explore alternative development contributions mechanisms for the drainage and flood mitigation infrastructure that is required to enable development of the Arden and Macaulay urban renewal precincts.

  See more information on the Urban Renewal Cost Recovery Scheme from Melbourne Water.
  

• Is a separate development contributions mechanism proposed for drainage and flood mitigation works?

• A separate development contributions mechanism is being investigated to fund the construction of required drainage and flood mitigation infrastructure, including water storages, levees, large pipes and pump stations across the Arden and Macaulay urban renewal precincts. The infrastructure network is across multiple catchments and is the responsibility of Melbourne Water and the City of Melbourne. Therefore, the levy proposed in the Macaulay DCP represents only part of the total cost of development contributions required to fund new infrastructure to support new development in the Macaulay urban renewal precinct.

  Melbourne Water and the City of Melbourne have responsibility for parts of the infrastructure network required. The levy proposed in the draft Macaulay DCP as part of Amendment C417 represents only part of the total cost of development contributions required to fund new infrastructure to support new development in the Macaulay urban renewal precinct. The permanent DCPO2 will be applied alongside a future development contributions mechanism that will support the delivery of the required drainage and flood mitigation infrastructure.

• What is City of Melbourne’s position on the acquisition of drainage land, identified as future land for open space?

• At its meeting on 9 July 2024, our Future Melbourne Committee noted the need to accelerate the delivery of the planned local open space network, following the significant increase in the residential population in the Kensington side of Macaulay. Council identified the acquisition and improvement of the drainage land abutting Moonee Ponds Creek (at the Corner of Stubbs Street and Macaulay Road) as being essential for both drainage and flood management and public open space in the Macaulay precinct.

  City of Melbourne will continue to work to identify the options for the earliest possible acquisition of the drainage land to deliver open space, irrespective of the timeline to complete Amendment C417.

  Further details on the status of City of Melbourne’s priority projects within the Moonee Ponds Creek can be found here.

Affordable Housing

• What is affordable housing?

• Affordable housing is housing for people on very low to moderate incomes. Affordable housing is not ‘cheap’ or of a poorer standard – it is quality, fit-for-purpose housing. Affordable housing is subsidised to a price that is affordable for the people who live there.

  At the City of Melbourne, we use the definition of affordable housing provided by Victoria’s Planning and Environment Act, which states that:

  “Affordable housing is housing, including social housing, that is appropriate for the housing needs of very low-, low-, and moderate-income households”.

  For more information on affordable housing, visit the Homes Melbourne Participate Melbourne Page.
  

• What is proposed in terms of affordable housing in Macaulay?

• We are encouraging 6 per cent of all new housing in Macaulay to be affordable housing.

  Under the proposed controls, an application for residential development would need to include a report on how the development contributes to the delivery of 6 per cent of housing as affordable housing. There are a range of mechanisms that developers can use to deliver affordable housing. The proposed controls also provide guidance on the mix of unit sizes and design.

• Why aren’t the proposed affordable housing contributions mandatory?

• Research commissioned for the draft Macaulay Structure Plan recommended a mandatory affordable housing contribution of 3.8 per cent from both residential and commercial development. Council then translated this into proposed planning controls that were submitted to the Victorian Government, who did not support this approach. Council was directed to introduce controls that are discretionary (not mandatory) and to only seek contributions from residential development.

  Council is not able to introduce a mandatory control without the State’s support. To progress the broader implementation of the Macaulay Structure Plan, we are proposing a discretionary affordable housing contribution, as required by the Victorian Government.

  This position does not align with Council’s broader advocacy and policy objectives on affordable housing. The City of Melbourne has long advocated for ‘Mandatory Inclusionary Zoning’ (another way of describing mandatory affordable housing contributions) for affordable housing to be included in our Planning Scheme. The Victorian Government has not supported this approach in the City of Melbourne to date.

  For more information on affordable housing, visit Homes Melbourne.

• What is key worker housing?

• Council has developed a definition of key worker housing. There is an opportunity for future development in the Macaulay precinct to provide key worker housing as their affordable housing contribution.