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Frequently Asked Questions about Developer Contributions

Please read the following information for an overview of Developer Contributions.  The current rates schedule may be downloaded via the link at the bottom of the page.

What is a Section 94 (Environmental Planning & Assessment Act) Contributions Plan?

It is a policy of Council that identifies the needs of the anticipated development for public services and amenities, how much these facilities will cost and how they will be funded. Generally S.94 plans identify development as being the major funding source for these facilities.

What is a Section 64 (Local Government Act) Contributions Plan ?

In 1987, the Water and Sewerage component of S.94 was removed and legislation introduced in the Local Government Act (LGA) under S.64 for the provision of Water and Sewer contributions. The Local Government Act refers to the requirements of the Water Supply Authorities Act 1987 (WSA).

Why do I have to pay?

The state government recognised in the 1970s that existing communities were subsidising the provision of services and amenities in new growth areas. As a result they introduced a “user pay” system (S.94) where those who generate the need for services and facilities should pay for their provision. S.94 of the Environmental Planning and Assessment Act 1979 (EPA Act) enables Councils to legally levy contributions from developers.

Principles of Contributions

The key principles of section 94 are based on the provisions of the EPA Act as amended. Water and sewer contributions follow a similar set of principles and guidelines. 

The basic principles are:

• A contribution may be required for either the provision of new or additional facilities, or the recoupment of funds already expended in anticipation of development;
• The contribution must be ‘reasonable’;
• Contributions are to be used only for the purpose for which they were collected;
• Financial contributions are to be spent and land dedications are to be made available within a ‘reasonable‘ time, and;
• There must be a demonstrated nexus (connection) between:
• The proposed development and the demand for the new or additional facility,
• The cost of the facility and the amount of contribution,
• The location of the development and the location of the facility, and
• The timing of payment of the contribution and the provision of the facility.

How do S. 94 (EPA) and S. 64 (LGA) affect Development Applications?

Council can only legally collect developer contributions under s.94 & s.64 through development applications. Contributions can be applied to any development that can be demonstrated to create additional need for services and amenities identified in the contributions plan.

Council collects contributions for these main development types:

• Residential subdivision, medium density housing & dual occupancy (granny flats)
• Retail/Commercial and Tourism development
• Industrial subdivision & development
• Extractive Industries
• Rural subdivisions and developments
• Other traffic generating developments

How have the contributions been calculated?

Contribution rates calculated for both S.94 and S.64 contributions generally use the following formula:

The contribution rate for extractive industries has been established having regard to the cost of maintenance of roads and the road network in the local area.

The S.94 plan should be consulted for full details of the calculations.

Why has my contribution gone up?

Whilst Council has the power to increase contribution rates every 3 months, they are usually increased each year in line with the consumer price index (CPI) for the previous 12 months which is a well established indicator of inflation. The purpose of this is to ensure that the funds received are generally in keeping with the increasing costs of providing services and facilities.

In relation to land proposed to be purchased in the plan(s) such as open space, Council will generally index land values by the CPI. However, Council may at any time undertake specific valuations of land and amend the plan with the new valuations. The reason for obtaining land values is that such values may increase at a substantially greater rate than the CPI. In some cases, contributions may also increase as a result of revised construction costs of facilities.

How do I calculate what my developer contributions will be?

The Developer Contributions Rates Schedule, downloadable from the link below,  will assist in this calculation. The schedule is divided into locations (towns/villages) and includes the contribution rates for residential subdivisions, medium density housing, commercial, industrial and tourism development.

Contact details
Strategic Planning
02 4868 0761 (ph)
02 4869 1203 (fax)
wscmail@wsc.nsw.gov.au

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