FAQs

The draft North Sydney Local Infrastructure Contributions Plan provides the basis for how council seeks to recoup money from development and how it seeks to provide new or expanded facilities for the community.

The draft plan identifies and costs all the works/facilities and land acquisitions necessary to meet the needs of the incoming population and calculates what contribution payment is required for each new residential lot, villa, townhouse or apartment. 

The draft plan is proposed to be a mix of s7.11 contributions for new residential development that has an increased demand and s7.12 levies for all other development (+ alterations & additions that have not previously attracted a levy) with a cost greater than $100,000. 

Under s7.11 of the Environmental Planning & Assessment Act 1979 (EP&A Act), councils may levy contributions towards providing new or expanded facilities, infrastructure and services necessary to help meet the increased demand created by new development in its area.

s7.11 has the advantage being able to levy higher rates of contributions where there is an increase in demand for Council infrastructure represented by additional population. This is intended to ensure that the existing ratepayers are not required to meet the cost of providing for new roads, community centres, libraries, open space and recreation facilities, which arises from incoming populations occupying new residential developments.

s7.11 is subject to Residential Development Contributions Capping. In June 2010, a Direction was issued by the Minister for Planning under s94E of the EP&A Act, providing for a cap of $20,000 for residential areas.

s7.11 can also be applied to non-residential development such as retail, commercial or industrial development, to meet increased demand for facilities such as public plazas, outdoor seating, road construction or traffic management.

s7.12 of the EP&A Act allows Council to impose a standardised development contribution levy when a development consent or Complying Development Certificate is issued. Clause 25K of the EP&A Regulation sets out the maximum contribution rates councils may levy: 

• Where the estimated cost of works is <=$100,000, no contributions are payable; 
• Where the estimated cost of works is >$100,000 & <=$200,000, 0.5% payable; and 
• Where the estimated cost of works is >$200,000, 1% payable. 

This levy provides greater flexibility in delivery of infrastructure as it has less constraints on spending and Council can’t be subject to legal challenge. 

The introduction of a s7.12 levy will result in contributions being payable for development not previously levied. This includes new dwellings, alterations and additions, shop and commercial fit outs and school projects which are in excess of $100K. This is the first time this will apply in North Sydney. It should be noted, however, that a s7.12 levy has applied to many other local government areas including Willoughby, Mosman, Northern Beaches Councils.

The plan will apply to the following development types:

1. Residential accommodation development that results in a net increase in residents on the land. These developments will be subject to condition requiring a s7.11 contribution.
2. Non-residential development that results in a net increase in workers on the land. These developments will be subject to a condition requiring a contribution imposed under either s7.11 or s7.12 of the EP&A Act (whichever is the higher). 
3. Development types apart from (a) or (b) where the proposed cost of development is more than $100,000. These developments will be subject to a condition requiring the payment of a levy under s7.12 of the EP&A Act. 

For developments that comprise a combination of some or all of type (a), (b) and (c) (i.e. mixed-use developments), the type of contribution and the amount of the contribution will be determined based on the higher amount, after both s7.11 and s7.12 are considered. This approach will capture a considerable amount of development which has not been captured in the past, including fit outs (under s7.12). 

The draft plan applies to secondary dwellings, schools, boarding houses, student accommodation, residential and commercial uplift.

Only s7.11 or s7.12 contributions may be levied on a development and not both. It is proposed that the draft local infrastructure contributions plan be a mix of s7.11 contributions for new residential development that results in increased demand and s7.12 levies for all other development (including  alterations & additions that have not previously attracted a levy) with a cost greater than $100,000. 

This is the optimal outcome for Council in terms of recoupment of funds, in the context of current and forecast development activity. Council has averaged approximately $9.9 million in contributions income over the last 5 years to 2019. In comparison, the proposed approach based on estimated development projections is likely to yield an average of $12.2 million per annum. The draft plan captures secondary dwellings, schools, boarding houses, student accommodation, residential and commercial uplift.

Development contributions are levied s7.11 / s7.12 as a condition of development consent.

The timing of payment of s7.11 / s7.12 contributions is dependent on the type of development application submitted. For development involving subdivision or building works, the contribution is payable prior to the release of a subdivision or construction certificate.

For development that does not require a construction certificate, payment is required prior to the issue of an occupation certificate or before occupation/use of the development.

It is estimated that approximately $195 million will be raised over the 16-year life of the plan through to 2036, directed to a works program of $401 million. This will enable Council to provide an important income stream to assist with the delivery of local infrastructure to meet growth and expectation in the community. Infrastructure projects associated with open space, public domain, community facilities and active transport are proposed to be funded through the draft Plan.

Some of the projects to be funded by the North Sydney Development Contributions Plan are: 

• Redevelopment of North Sydney Olympic Pool
• Redevelopment of Hume Street Park
• Upgrade to facilities at North Sydney Oval
• CBD upgrades at North Sydney, St Leonards and Crows Nest, including lighting, new furniture, footpaths and landscaping
• Provision of new on-road and off-road cycleways and shared paths
• Playground upgrades throughout the LGA

The total cost of the work schedule will not be met by the anticipated s7.11 contributions which gives rise to a funding gap. Other sources of funding (such as capital works allocations, grants and s7.12 funds) are needed for all works to be delivered.

The section 7.12 levy encourages an efficient and equitable distribution of public infrastructure projects by applying the levy and financial burden across a larger catchment area. i.e. unlike s7.11 – a s7.12 levy does not need to establish a demand or connection between the increased population and need for new facilities.

The section 7.12 levy allows a simple percentage rate to be applied to new development. In accordance with the Minister of Planning’s advice on November 2006, Councils are able to levy up to 1% on developments, which cost more than $200,000. If the total estimated costs of your renovations is $250,000, Council is entitled to charge a levy of 1% (a total of $2,500) under Section 7.12 of the Environmental Planning and Assessment Act 1979 (EP&A Act).

• As people renovate their homes, Council needs to renovate its public infrastructure to ensure it can meet residents’ expectations.
• The section 7.12 levy encourages an efficient and equitable distribution of public infrastructure projects by applying the levy and financial burden across a larger catchment area. i.e. unlike s7.11– a s7.12 levy does not need to establish a demand or connection between the increased population and need for new facilities.
• The section 7.12 levy allows a simple percentage rate to be applied to new development. In accordance with the Minister of Planning’s advice on November 2006, Councils are able to levy up to 1% on developments, which cost more than $200,000. If the total estimated costs of your renovations is $250,000, Council is entitled to charge a levy of 1% (a total of $2,500) under Section 7.12 of the Environmental Planning and Assessment Act 1979.
• The levy can be applied to any form of development such as commercial/retail, industrial, single dwellings, alterations and additions and swimming pools. Money raised by this levy is applied towards the provision, extension or augmentation of public facilities or services (or towards the recouping of the cost of their provision, extension or augmentation) for the benefit of all in the community.
• Many other councils apply a flat rate levy of 0.5-1.0 % including City of Sydney, Mosman, Willoughby, Hornsby, Randwick, Northern Beaches, Canada Bay, Hawkesbury, Kogarah, Port Stephens, and Wagga Wagga.