Development contributions

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What are development contributions?

The Environmental Planning & Assessment Act 1979 sets the statutory framework under which we can obtain contributions from new developments to be put towards funding the cost of additional infrastructure required.

We levy under Section 7.11 (formerly Section 94) for a variety of developments including:

  • Residential development (including subdivision, medium density & secondary dwellings)
  • Rural and rural residential development
  • Non-residential development (i.e commercial, retail, industrial buildings)

These types of development result in an increase in demand for public infrastructure and services and are therefore required to contribute towards the cost of meeting that demand.

The infrastructure to be funded by developer contributions will vary depending on where the development is located, but generally includes such things as libraries, community centres, parks, sporting fields, drainage, major roads and traffic facilities.

Developers may also enter into a planning agreement with Council under Section 7.4.

How are contributions calculated?

Our Section 94 Contributions Plan contains the formulas used for determining the contribution rates and an Infrastructure Works Plan which sets out the proposed infrastructure items and delivery timeframes.

Residential contributions

All residential contributions are calculated on a per lot or per dwelling basis. The cost of infrastructure is apportioned between ourselves and developers on the basis of existing and future dwellings. Contributions are levied through conditions of the development consent.

Non-residential contributions

Contributions are also required for non-residential development. This includes commercial, industrial, tourist, health and education related development. Non-residential development is only levied contributions for our Administration Offices and Section 94 Management. The contribution payable is based on the increase in floor area of the development. To provide equity between non-residential and residential development the rate is capped at a maximum of 1,001 square meters.

Open Space contributions

Some large scale residential subdivisions will also be required to provide land and embellishment for new public open space areas (parks).

When does the contribution need to be paid?

If you are subdividing land, before the release of the subdivision certificate. If you are constructing a building, before the release of the construction certificate.

What is a planning agreement?

Planning agreements (commonly known as VPAs), are a voluntary arrangement between ourselves and a developer to deliver public benefits.

Planning agreements may be negotiated during the development application pre-lodgement phase or as part of a request for rezoning via a planning proposal.

The key advantage of planning agreements is that they are a more flexible type of development contribution mechanism. Planning agreements allow a developer to propose alternatives and variations to the timing and method of delivering public infrastructure. They also allow us to secure mutually beneficial outcomes that may exceed a developer's usual contribution obligation.

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Current VPAs and Planning Agreements Register

Want to know more?

For more information on developer contributions please contact our City Planning Department on 4221 6111.

Location

John Street
Shellharbour NSW 2529
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Last updated : Mon 25 Feb 2019