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MSA levy commences today

The Melbourne Strategic Assessment (Environment Mitigation Levy) Act 2020 and associated Regulations commence today.


The increased environmental levy will apply in the declared levy area from 1 July 2020, replacing the Habitat Compensation Obligations (HCOs).


The levy will pay for conservation activities committed to during the Melbourne Strategic Assessment, conducted under Part 10 of the Environment Protection and Biodiversity Conservation Act 1999.


What land affected?

Levy areas have been declared and you can check if your land is affected: https://www.msa.vic.gov.au/__data/assets/pdf_file/0031/477661/Levy-Area-Declaration.pdf


When do I need to pay?

Liability to pay the levy will be triggered by specified events, including:

  • Issue of Statement of Compliance for a plan for subdivision

  • Building permit application.

  • Work plan approval or variation under the Mineral Resources (Sustainable Development) Act 1990

  • Construction of utility infrastructure or roads on Crown land.

How much will it cost?

The levy rates per hectare for the financial year 2020/21 are:

  • Native vegetation patch - $113,441

  • Scattered tree (per tree) - $15,768

  • Growling Grass Frog - $7,846

  • Golden Sun Moth - $10,005

  • Spiny Rice-flower - $8,522

  • Matted Flax-lily - $11,351

  • Southern Brown Bandicoot - $4,138

The rates will increase based on a composite index plus an additional annual adjustment to achieve full cost recovery by 2024/25. After the first 5 years, only the composite index will apply.


How do I pay my levy liability?

Once a trigger event occurs, DELWP will issue a levy assessment notice to the landowner. The notice will set out the levy amount and due date. Once payment is made, DELWP will issue a certificate to confirm payment. The specific process depends on the levy event. For example, for building permit applications, a building surveyor cannot issue the building permit until the levy has been paid.


More information on paying the levy can be found at:

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