Development contribution plans set out the framework and requirements proposed to help fund, plan and deliver infrastructure and services to meet the needs of current and future residents, in a planned and sustainable manner.
What are development contributions?
Development contributions are payments made by developers to Council for the provision of public infrastructure.
The contributions allow us to provide public amenities and services to meet the increased demands created by the new development. These can include shared pathways, libraries or roads.
What kinds of contributions are there?
The types of contributions that could be required as part of a development are:
Section 7.11 (previously Section 94)
- authorised by Section 7.11 of the Environment Planning & Assessment Act 1979 (EP&A Act)
- levied for projects directly related to the development (there is a nexus) such as infrastructure including open spaces, recreation, local roads, community facilities and cycleways
- more details can be found in the Local Infrastructure Contributions Plan 1994.
Section 7.12 (previously Section 94A)
- authorised by Section 7.12 of the EP&A Act
- levied to fund projects that may not directly relate to the development (no nexus required)
- can only be levied for projects found in the S94A Levy Contributions Plan 2014.
Section 64 - water and sewer headworks
- authorised by Section 64 of the Local Government Act 1993 (LGA)
- levied to fund water and sewer infrastructure directly related to the development (there is a nexus) such as treatment plants and pump stations
How are the contributions calculated?
Section 7.11 and Section 64 contributions are calculated by apportioning the potential demand of the proposed development against the cost of the infrastructure required to service the total demand placed on the infrastructure.
Section 7.12 contributions may be charged as 0.5% of the estimated cost of the development on all development valued at $100,000 to $200,000 or at 1% of the estimated cost of the development on all development valued at more than $200,000.
A development may attract s64 and either s7.11 or s7.12 contributions.
Details of the contribution rates, the method used to calculate them can be found in Council's contributions plans.
What do the contributions plans apply to?
The applicable development types and areas are identified in each contribution plan. Some plans list certain exemptions from contributions such as the development of affordable housing.
When is the contribution payable?
- The s7.11 contribution will be payable either prior to the issue of a Construction Certificate or Complying Development Certificate to construct the building/s or prior to the issue of a Subdivision Certificate.
- Section 7.12 contributions will be payable prior to the release of the Construction Certificate.
- Section 64 contributions will be payable prior to the issue of a Construction Certificate.
What other method is there to make a contribution?
The Planning Agreements Policy provides a flexible method by which new development will contribute to new or upgraded facilities and services.
A planning agreement is a voluntary agreement or other arrangement under s7.4 (previously Section 93F) of the EP&A Act between Council and a developer under which the developer is required to dedicate land free of cost, pay a monetary contribution, or provide any other material public benefit, or any combination of them, to be used for or applied towards a public purpose.
