Victoria’s infrastructure contributions environment is changing, and for councils affected by the Train and Tram Zone Activity Centres Program, those changes are getting closer.

But preparing for what comes next isn’t simply a matter of understanding a new set of rules. 

Existing Development Contribution Plans (DCPs), ICPs, historical collections, unspent balances, infrastructure commitments and delivery obligations don’t disappear when a new framework comes into effect.

Instead, councils face the challenge of managing the legacy alongside the new, often across multiple teams, systems and processes.

That’s what makes developer contributions much more than just an issue for your planning or finance teams. They increasingly encompass whole-of-council governance, financial and risk management.

The rules are changing, but the legacy remains.

A new contributions system for Activity Centres is coming, and councils will play a central role in collecting and managing infrastructure contributions generated by development within Train and Tram Zone Activity Centres. This brings new responsibilities alongside existing contributions arrangements.

The new Infrastructure Contribution Plans (ICPs) are planned to commence for planning applications in the 10 pilot activity centres from January 2027, followed by the 48 Train and Tram Zone Activity Centres in Stages 1 and 2 from July 2027.

Also, on 7 August 2026, the Victorian Government published new ministerial directions relating to the preparation, content and reporting of DCPs and ICPs. Amongst other things, these new directions outlined the rules for the collection and expenditure of newly gazetted ICPs, as well as introducing a consistent and structured approach to reporting on the collection and expenditure of DCP and ICP funds.

For councils, this puts an even greater focus on having accurate contributions data that is accessible and structured in a way that supports reliable reporting.

The challenge is that many councils are already managing years, sometimes decades of developer contributions activity. This can include historical collections and expenditure, existing balances, infrastructure projects, outstanding commitments and obligations under existing DCPs and ICPs.

A new framework doesn’t make any of that disappear.

Councils will most likely need to manage existing arrangements alongside new contribution models and changing reporting requirements for years to come. Being well prepared for the new system starts with having a clear picture of what your council is already managing today.

Developer contributions are a corporate responsibility

Delve into how many people across your council have involvement in developer contributions… The final number is probably more than you think.

Planning might establish the contribution requirements. Development Assessment may apply them. Finance manages the money. Infrastructure and Asset Management are involved in deciding where and when that money is spent. Governance may have oversight of compliance and risk. Executives ultimately need confidence that the organisation has appropriate controls in place.

With new Activity Centre ICPs adding another layer to this environment, having a connected view across these functions becomes even more important. 

No single team owns the entire picture. And that’s why contributions management can become difficult.

Councils need to confidently answer:

• How much have we collected?
• How much is currently available?
• What has that money already been committed to?
• Which infrastructure projects is this funding intended for?
• Are funds being allocated and spent correctly?
• Do all teams have the same view of the numbers?
• Can we demonstrate compliance and provide a clear audit trail?

The answers can be difficult to come by when information is spread across spreadsheets, finance and planning systems, project records and teams, increasing the risk of errors and gaps in reporting. 

Restricted funds need more than a spreadsheet balance

Developer contributions are externally restricted funds. Councils need to know not only how much money they hold, but also what it can be used for and whether it is being managed in line with the relevant requirements.

That includes being able to demonstrate appropriate expenditure, interest allocation, accounting treatment and allocation of funds. This is where good contributions management becomes a governance issue.

It’s not enough for the information to exist somewhere in the organisation. Council needs confidence that the information is accurate, reconciled and accessible. There needs to be clarity surrounding what was collected, why it was collected and how it is ultimately spent.

When those connections are difficult to see, reporting becomes harder. Reconciliation takes longer. Knowledge can become dependent on individual staff members. And identifying issues before they become bigger problems is less likely to occur.

Readiness is bigger than compliance

It would be easy to treat Victoria’s contribution reforms as another compliance exercise by understanding the new requirements, updating reporting processes and moving on.

But they provide an opportunity to discuss how well equipped your council is to manage developer contributions as a whole.

That means looking beyond legislation and considering the five foundations that make contributions management work in practice: people, processes, data, systems and governance.

To strengthen contributions management, Councils need to ask the following:

• Do the right teams have access to the information they need?
• Are responsibilities clear?
• Can data be reconciled without a lengthy manual exercise?
• Can you see historical and current obligations in one place?
• Can you trace funds from collection through to infrastructure delivery?
• And if an auditor, executive or councillor asked for a clear picture of the council’s contributions position today, how easily and quickly could you provide it?

These are useful questions regardless of what happens next with Victoria’s infrastructure contributions framework. Because ultimately, readiness is about understanding the next set of rules and being confident in how your existing data is being managed. 

For councils, navigating the changing contributions landscape, managing existing DCPs, ICPs and historical obligations, all while having a clear view of the contributions lifecycle is crucial for delivering the infrastructure communities rely on.

We purpose-built Novoplan to help councils successfully overcome these challenges. Created by a group of experienced infrastructure planning practitioners, Novoplan allows you to manage developer contributions and infrastructure funding in one connected environment, improving visibility across contributions, financial information, obligations and infrastructure delivery.

To find out how Novoplan can help your council understand where it stands today and prepare for what comes next, contact our team for a discovery session.