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17 Mar Get ready for the new MSA ‘Environment Mitigation Levy’

Posted at 05:09h in News by

The Environment Protection and Biodiversity Conservation Act (EPBC Act) Melbourne Strategic Assessment (MSA) was first implemented in 2010. It provided for the streamlined approval of development in Melbourne’s Growth Corridors by effectively pre-approving removal of native vegetation in all but key, highly valuable conservation reserves and establishing a strategic offset comprising nature reserves in remnant grasslands west of the Urban Growth Boundary and along key waterways.

Fees have been charged since then to fund these strategic offsets, both land purchase and on-going management.  Since then, the fees have not been updated, until now. The new Melbourne Strategic Assessment (Environment Protection Mitigation Levy) Bill was introduced in October 2019 and comes into force in July this year (2020). The bill provides for Environmental Mitigation Levies to replace the current fees.

The levy that a developer must pay depends on the ‘time-stamped’ DELWP mapping of native vegetation, threatened species habitat and scattered on their sites.  This mapping is not negotiable.  Landowners can apply to DELWP to pay these levies in stages where land will be subdivided.

The new levies will take affect from 1st July 2020 and replace the existing habitat compensation obligation amounts. All property and infrastructure developers within the MSA area consider the timing for applying for a payment arrangement and factor the cost into timetables and financial modelling of developments.

The levy will be reviewed 3 years after implementation to determine if “the component levy amounts are at an appropriate level to fund the most effective and efficient measures and activities to achieve the conservation outcomes” (from the Bill).

The current and new fees (excluding GST) are listed below:

If you need more information or require assistance responding to these arrangements, we have a dedicated team of professionals with extensive experience assisting clients to comply with these requirements

Please contact Cara Cappelletti at Nature Advisory on (03) 9815 2111 to discuss your next steps.