New Infrastructure Contributions in Victorian Train and Tram Zones (2027)

The 2026-27 Victorian Budget introduces a new state revenue stream for property development inside Train and Tram Zone (TTZ) Activity Centres. The charge is called an Infrastructure Contribution, with first payments forecast from 2026-27. This article sets out what the Budget Papers say, with page citations for every figure. It does not predict price effects or assess policy. Where the Budget is silent, including on which centres are in the pilot, that is stated plainly.

What the 2026-27 Budget announced

The Budget introduces a new Infrastructure Contribution charge applying to property development in Train and Tram Zone Activity Centres. The measure appears in BP5 Table 4.2 on page 169 within the State Revenue forecasts, with explanatory note (c) on page 170. BP3 page 86 records implementation funding under “Supporting infrastructure contributions delivery” within the Department of Transport and Planning. See our Victorian Budget 2026-27 property guide for the broader Budget summary.

What is the Infrastructure Contribution?

According to BP5 note (c) on page 170, the Infrastructure Contribution is a charge on development within designated Train and Tram Zone Activity Centres, with funds ring-fenced for state and local infrastructure inside those Activity Centres. The Budget Papers categorise it within state taxation revenue, separate from the Growth Areas Infrastructure Contribution. The Budget does not publish the rate, the formula, the trigger event for liability, or the exemptions. Those operational details will need to be confirmed against legislation or regulations once published.

Start date: 1 January 2027 in 10 pilot Activity Centres

BP5 Table 4.2 note (c) on page 170 states that the Infrastructure Contribution begins on 1 January 2027 in 10 pilot Train and Tram Zone Activity Centres. The Budget Papers do not name the 10 pilot centres. That list is not published in BP3, BP5 or the Budget Overview. Readers wanting the specific suburbs and boundaries should refer to the Department of Transport and Planning at planning.vic.gov.au once the pilot list is released. Treat any list circulating before official publication as unconfirmed.

Expansion: 48 more Activity Centres from 1 July 2027

The same note (BP5 p.170, note (c)) records the expansion of the scheme to 48 additional Train and Tram Zone Activity Centres from 1 July 2027, six months after the pilot starts. That brings the total in-scope centres to 58 once the expansion takes effect. As with the pilot list, the 48 additional centres are not named in the Budget Papers. The Department of Transport and Planning is the source of truth for both lists.

Forecast revenue: $7m to $140m by 2029-30

BP5 Table 4.2 on page 169 sets out the forecast revenue from the Infrastructure Contribution across the forward estimates:

• 2026-27: $7 million
• 2027-28: $98 million
• 2028-29: $99 million
• 2029-30: $140 million

BP3 page 86 also records implementation funding under “Supporting infrastructure contributions delivery”.

How the charge sits alongside the Growth Areas Infrastructure Contribution (GAIC)

The Infrastructure Contribution does not replace the existing Growth Areas Infrastructure Contribution. BP5 Table 4.2 on page 169 shows GAIC continuing through the forwards at approximately $225 million a year. GAIC applies to development in designated greenfield growth areas on Melbourne’s fringe. The new Infrastructure Contribution applies inside Train and Tram Zone Activity Centres, which are existing built-up areas served by rail or tram. The two operate in parallel under different rules and different geographies. The Budget Papers do not state any interaction or offset between the two charges.

What developer-purchasers and off-the-plan buyers should check

The Budget Papers describe the charge but do not state who is liable, how it is calculated, or how it is collected. Developer-purchasers acquiring sites within Train and Tram Zone Activity Centres from 1 January 2027 should check the published list of pilot centres and the legislation or regulations once available. Off-the-plan buyers signing contracts in those centres may wish to ask the developer how the charge has been treated in their feasibility. See our off-the-plan stamp duty concession explainer, our commercial property tax article and Tick Box’s developer conveyancing service.

Where to find the list of Activity Centres

The Budget Papers do not publish the list of 10 pilot Activity Centres or the 48 expansion centres. The Department of Transport and Planning is the responsible agency (planning.vic.gov.au and dtp.vic.gov.au). Revenue administration sits with the State Revenue Office at sro.vic.gov.au. Until the pilot list is officially published, the in-scope suburbs cannot be confirmed from Budget sources alone. The safest course is to check the official Department list before relying on a centre being in or out of scope.

Frequently asked questions

When does the new Infrastructure Contribution start in Victoria? The pilot begins on 1 January 2027 in 10 Train and Tram Zone Activity Centres, with expansion to a further 48 centres from 1 July 2027 (BP5 p.170, note (c)).

What is a Train and Tram Zone Activity Centre? The Budget Papers refer to designated Activity Centres located on the train and tram network. The specific list of centres is published by the Department of Transport and Planning, not in the Budget Papers.

Will the Infrastructure Contribution affect off-the-plan apartment prices? The Budget Papers describe the charge and its forecast revenue but do not state whether or how it will affect prices. Tick Box will update this article if the Department publishes guidance or if a future review addresses pricing.

Where is the list of pilot Activity Centres? The 10 pilot centres are not named in the Budget Papers. Refer to the Department of Transport and Planning at planning.vic.gov.au for the official list when published.

How does this differ from GAIC? The Growth Areas Infrastructure Contribution applies to greenfield growth areas on Melbourne’s fringe and continues at around $225 million a year (BP5 p.169). The new Infrastructure Contribution applies inside Train and Tram Zone Activity Centres. They are separate charges with different geographies.

Buying or developing in a Train and Tram Zone Activity Centre?

Tick Box Conveyancing handles off-the-plan and commercial conveyancing across Victoria. If you are signing a contract in a centre that may fall inside the new Infrastructure Contribution scheme, get an instant quote or contact us and we will review it against the latest information from the Department of Transport and Planning and the State Revenue Office.

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This article summarises the Victorian Budget 2026-27 as published on 5 May 2026. It is general information, not legal advice. For matters specific to your transaction, contact Tick Box Conveyancing.