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Frequently Asked Questions about Developer ContributionsLast modified: January 5, 2009 - 8:56 AM
Please read the following information for an overview of Developer Contributions. 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 Management Act 2000. Why do Developers 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. Essentially development contributions are an internal mechanism for Council to ensure the community (via higher rates etc) does not bare the costs of mitigating against the impacts of development.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:
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 (including granny flats) How have the contributions been calculated? Contribution rates calculated for both S.94 and S.64 contributions generally use the following formula:
The S.94 plan should be consulted for full details of the calculations.
Council’s contributions plans include provisions that allow it to increase its’ contributions rates by upward movements in the Consumer Price Index each quarter (every three months). 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 here, 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. Should you require an accurate estimate of contributions for a proposed development please contact Council’s Contributions/Strategic Planner as follows: Contact details |
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