1 Audit context

As Victoria’s population grows, state and local governments need to build infrastructure to maintain Victorians’ standard of living. However, this places financial pressure on state and council budgets.

Development contributions provide governments with the opportunity to acquire additional funds to meet these needs.

Audit overview

Victoria’s growing population is placing pressure on its infrastructure. Development contributions can help the state government and local councils meet infrastructure needs within their budgets.

Development contributions are payments or in-kind works, facilities or services that developers and landowners provide towards the supply of infrastructure. Councils and the state use several tools to collect development contributions. The state government oversees all these tools.

Acronyms

BNCF Building New Communities Fund
CIL community infrastructure levy
DCP Development Contributions Program
DELWP Department of Environment, Land, Water and Planning
DTF Department of Treasury and Finance
GAIC Growth Areas Infrastructure Contribution
GAPTF Growth Areas Public Transport Fund

Transmittal letter

Independent assurance report to Parliament

Ordered to be published

VICTORIAN GOVERNMENT PRINTER March 2020

PP No 116, Session 2018–20

The Hon Shaun Leane MLC
President
Legislative Council
Parliament House
Melbourne
 
The Hon Colin Brooks MP
Speaker
Legislative Assembly
Parliament House
Melbourne
 

Dear Presiding Officers

Managing Development Contributions

Body

Development contributions are payments or in-kind works, facilities or services that developers and landowners provide towards the supply of infrastructure. Councils and the state use several tools to collect development contributions. The state government oversees all these tools.

This audit examined whether development contributions provide required infrastructure to new and growing communities as intended. We examined three programs and one other legal instrument:

Transmittal letter

Independent assurance report to Parliament

Ordered to be published

VICTORIAN GOVERNMENT PRINTER October 2019

PP No 86, Session 2018–19

The Hon Shaun Leane MLC
President
Legislative Council
Parliament House
Melbourne
 
The Hon Colin Brooks MP
Speaker
Legislative Assembly
Parliament House
Melbourne
 

Dear Presiding Officers

Appendix D. Data envelopment analysis

Methodology

Government agencies often measure the efficiency of services by using a cost per output ratio. In contrast, DEA uses multiple inputs and outputs to benchmark efficiency across a group of organisations, such as libraries, that deliver similar services. In applying DEA, the most efficient libraries of the group receive a score of one. The remaining organisations receive a score between zero and one, which shows how their efficiency compares to the most efficient organisation of the same group, as shown in Figure D1.