MORNINGTON Peninsula Shire is seeking public reaction to plans that could see a 3.3 per cent levy on new houses.
The levy would not apply to renovations to existing home; new houses replacing existing ones; granny flats; or public buildings.
Calling the proposed levy an “innovative solution to ease the housing crisis”, the shire last week issued a statement asking if residents would “treat social housing as essential infrastructure, much like public open space, car parking and drainage”. It said the peninsula’s “growing housing crisis” was “devastating families and individuals”.
While acknowledging social housing as being “largely” the responsibility of state and federal governments, the shire stated that a development contribution scheme could help ease problems caused by the peninsula’s “relatively small rental market heavily dominated by short-stay rental accommodation”. “It is now significantly more expensive to rent a home on the peninsula than in Melbourne and we have a shortage of about 4716 social housing units across the shire,” the statement said. “If nothing is done to address this, that shortfall will grow to 8051 by 2041.”
Tourism and hospitality sectors were struggling to find staff due to a lack of affordable accommodation. “Low-income local residents are being forced out of the region – away from their families and support networks – or are being rendered homeless. “A shocking 12 per cent of our homeless residents are sleeping rough each night, making us the fourth worst [municipality] in Victoria.”
The 3.3 per cent development levy was a potential solution to pay for more government subsidised social housing.
“The scheme would require planning permit applicants to contribute 3.3 per cent of the market value of all developments that result in a net increase in the number of dwellings on the peninsula or an increase in industrial or commercial floor space,” the shire stated. “This scheme could help deliver 600 to 1000 social housing dwellings – representing between nine and 17 per cent of total need for the shire to 2041.”
The mayor Cr Simon Brooks said councillors expect the proposal to “generate a lot of community interest”.
“There are costs and benefits to this approach and all need to be brought to the table for debate,” Brooks said. “We need a diversity of views to help council make an informed decision. We are seeking feedback on the different components of the scheme and the different options proposed and are keen to hear what the benefits and impacts would be for our community and stakeholders. “Already, we are hearing from our homeless service providers how this will help ease the housing and homelessness crisis.
“There are understandably also concerns about the impact of the proposed scheme on future developments. All views will be carefully considered before any decision is made on whether to proceed.”
Councillors who voted for the move to seek community feedback on the 3.3 per cent were David Gill, Despi O’Connor, Kate Roper, Sarah Race, Debra Mar and Antonella Celi. Against: Anthony Marsh, Lisa Dixon and Susan Bissinger.
First published in the Mornington News – 23rd April 2024
