FAQs
- You are building a new home, and the certified estimated cost of development is $250,000.
- The applicable contribution percentage rate is 1%
- Your required contribution payable is $2,500 + GST
Q. What is a 7.12 Local Infrastructure Contributions Plan?
A Section 7.12 Local Infrastructure Contributions Plan sets out where developer contributions apply and how they are calculated. The plan also includes the infrastructure works that may be funded through any contributions collected.
Section 7.12 of the Environmental Planning and Assessment Act 1979 (EP&A Act) allows a fixed rate levy on the proposed cost of development to be imposed when a development consent or complying development certificate is issued.
Development contributions received under s7.12 help to provide for parks, local road improvements, town centre improvements, community centres and other services.
Q. What are developer contributions?
Developer contributions are charged by councils when new development occurs. They help fund infrastructure like parks, community facilities, local roads, footpaths, stormwater drainage and traffic management.
How are development contributions levied under the Draft Plan?
Levies are calculated based on the estimated cost of works of the development in accordance with Clause 209(2) of the EP& A Regulation 2021.
Proposed Cost of Carrying out the Development | Capped Contribution Rate |
Up to and including $100,000 | Nil |
More than $100,000 and up to and including $200,000 | 0.5% of that cost |
More than $200,000 | 1% of that cost |
Example:
Q. What information will I need to provide to Council or Certifiers to calculate the levy?
The genuine estimate of the cost of works must be supplied at the time an application is lodged at the applicants cost.
|
|
For development value up to and including $100,000 | A cost estimate must be provided by the applicant or a suitably qualified person and include the methodology used to calculate that cost submitted with the DA. |
for development value greater than $100,000 and less than $1 million | A cost estimate must be prepared by a suitably qualified person and include methodology used to calculate that cost submitted with the DA. |
For development values greater than or equal to $1 million | A detailed cost report must be completed by registered quantity surveyor. |
,
A suitably qualified person is: a builder who is licensed to undertake the proposed works, a registered architect, a qualified and accredited building designer, a registered quantity surveyor or a person who is licensed and has the relevant qualifications and proven experience in costing of development works at least to a similar scale and type as is proposed.
Based on the above information, development assessment staff will calculate the levy applicable at the time of determination.
Q: What land does the Draft Plan apply to?
The Draft Plan applies to the entire Snowy Valleys Council Local Government Area
Q How will the 7.12 contribution funds be spent?
The funds levied will assist in delivering the projects identified in the Works Schedule contained in Appendix B of the Draft 7.12 Plan.
These schedules outline the infrastructure that Council will provide, an estimate of the cost, and likely timing.
It should be noted that contributions levied must be spent on capital works and can’t be used for maintenance or operations.
Q. What is the works schedule?
The works schedule (Appendix B of the draft plan) identifies the infrastructure required to meet the needs of the forecast development and an estimate of the timeframe within which each infrastructure works item will be delivered.
The works schedule is supported by a map (Appendix C) which shows where the works in the schedule will occur.
The projects identified within the Works Schedule are projects that have been identified through Council’s Strategies, Masterplans and/or other Plans.
It is not anticipated that contributions will fund the entire cost of the projects identified and other sources of funding, such as general revenue or grant funding will contribute to the delivery of projects. The timing and delivery of projects will ultimately be subject to available funding.
Q. When will the changes come into effect?
Once the Draft Local Infrastructure Contributions Plan (Section 7.12) Plan has been exhibited for a period of 28 days, a review of any submissions will be undertaken and any changes made to the Plan if necessary.
A post exhibition report and final Contributions Plan will then be considered by Council. If Council endorses the Section 7.12 Contributions Plan, it is anticipated that the new Plan will commence in the last quarter of 2024 / first quarter of 2025.
Q. How will contributions that were collected in the past be spent?
Contributions that have been collected under the previous section 7.11 Contribution plans for open space and public roads have been allocated to projects identified under those plans including upgrading parks (Bottlebrush Reserve and Rotary Pioneer Park), upgrading active recreation trails such as the Tumut River Walk, upgrading and creating new disabled parking opportunities within the town centres close to medical providers and local services. The plans also assist in road upgrades within the town centres.