The asset protection fee, and an asset protection security bond, were proposed for introduction through the fees and charges for 2024-25, but did not receive council backing.
Interested parties would have had 28 days from the council meeting date (Tuesday, April 23) to comment on the proposed fee, if indeed it had been passed as proposed in the council agenda.
The new revenue stream could have directly impacted residents whose building works posed a potential risk to council infrastructure.
An asset protection fee can be applied to anything from the construction of a new home to the installation of a swimming pool or driveway — and in many cases, councils also have an associated security bond attached to the fee.
Council officers proposed a $350 fee for a single dwelling (including a pool construction, driveway or any construction work determined by council) and a $700 fee for multi-dwelling or commercial developments.
There were also five different security bonds proposed as part of the failed introduction of an asset protection process. They ranged from $2000 to $12,500, depending on the value of the project.
Any project under $100,000 would have required a $2000 bond, while the proposed bond for projects from $500,000 to $1 million was $7500. Anything above $5 million would have required a $12,500 bond.
The asset protection fee would have applied to builders, developers, service providers and residents carrying out building works that may impact an asset in a road reserve.
The fee would have allowed council to carry out pre- and post-works inspections to ensure that works did not damage council assets.
Asset protection permit costs vary dramatically throughout Victoria — there is a $126 cost within the City of Bendigo while Knox City Council charges $270, but does not charge a bond as part of the standard asset protection inspection process.
Other Victorian councils have bonds attached to their asset protection permit when the cost of a project reaches a certain amount.
In applicable councils, an application for an asset protection permit must be lodged prior to any building works, demolition works, swimming pool construction, removal of dwellings, dwelling additions and alterations, commercial/large scale developments, re-blocking/re-stumping works, front fencing works and use of cranes and scissor lifts on footpaths.
Building surveyors are responsible for ensuring that an asset protection permit has been obtained, prior to the issue of the building permit.
Failure to obtain an asset protection permit prior to works commencing may result in an infringement being issued and a ‘cease works’ notice being issued on the site.
An asset protection permit is issued by council for the protection of public infrastructure during construction.
It assists a council to ensure public infrastructure is not damaged due to building works and also protects owners/builders against paying for damage on public infrastructure that existed prior to them starting works.
Fees are mostly calculated to cover the cost of two discretionary site inspections by council officers during the period of the building activity.
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