What are Development Contributions?
Development contributions help cover the cost of delivering infrastructure needed to support new communities and homes. They are about making sure that developers and businesses are contributing towards the infrastructure needed to support new homes.
The development contributions system operates under the Environmental Planning and Assessment Act, 1979. The provisions of Section 94 (s94) of the Environmental Planning and Assessment Act 1979 enable councils to collect development contributions as a means for funding local infrastructure and services that are required as a result of new development. Contributions can be applied to capital costs, including land acquisition, and public facilities that a council has a responsibility to provide or that are needed as a consequence of, or to facilitate, new development. S94 contributions cannot be applied to on-going operational or maintenance costs. Contributions may include:
- The dedication of land
- The payment of monetary contribution
- A material public benefit
- A combination of some or all of the above
Section 94A (s94A) of the Environmental Planning and Assessment Act 1979 allows a levy, to a maximum rate of 1% of the cost of construction of a development to be imposed when a development consent or complying development certificate is issued. A s94A contribution can only be imposed if a Section 94A development contributions plan is in place and cannot be imposed on the same development application or development certificate which requires a s94 contribution.
Who Pays Development Contributions?
Development contributions under Section 94 will be sought by Council for a range of development including:
- Subdivision of Land (urban, rural and rural residential)
- Medium Density Housing
- Expansion or redevelopment of existing residential development, (infill development) that includes either subdivision or additional housing stock)
- Commercial and Industrial Development
- Recreation and tourist facilities
Generally, contributions will be sought for all development other than for the purpose of a new dwelling or dwellings and development for the purpose of alterations and additions to existing dwellings or any development ordinarily incidental or ancillary to the use of a dwelling such as swimming pools, garages, sheds, tree applications and the like.
How and when are Development Contributions Payable?
If a development application is subject to Section 94 contributions the amount payable will be detailed in the conditions of consent for the development.
Payment of the contribution shall be made prior to the release of any Subdivision, Construction or Occupation Certificate.
Contribution rates including any outstanding contributions are to be adjusted quarterly (where necessary) in line with the Consumer Price Index as published by the Australian Bureau of Statistics.