Development Contributions - Section 94

Section 94 of the Environmental Planning and Assessment Act, 1979, allows Council to charge contributions on Developers for public infrastructure necessary as a consequence of new development.  Contributions may be in the form of cash payments, transfer or dedication of land to Council, or the provision of a material of public benefit (generally known as works in kind).  

For Council to levy contributions there must be a clear link between the proposed development and the need for the public infrastructure. 

What is a developer contribution?

Developer contributions are generally monetary payments required to be made to Council so it can upgrade and provide infrastructure and facilities to cater for the demands generated by development. Contributions can also be made by way of land dedications and works-in-kind in specific circumstance. 

Contributions are collected for the embellishment of public open space, community facilities, the public road network, drainage, water quality, environmental protection and public car parking in accordance with development contributions plans prepared and adopted under the Environmental Planning and Assessment Act, 1979.

Contributions are collected for water supply and sewerage headworks under the Water Management Act, 2000.

To obtain a copy of any of the Contribution Plans contact Council's Land Use Planning and Policy Development Section.  The amounts of contributions that are payable and the works that the monies are used to fund, are set out in contributions plans that have been adopted under the Environmental Planning & Assessment Act, 1979.

How much are the contributions? 

Council indexes and adjusts contribution rates quarterly, in accordance with the Consumer Price Index (CPI) published by the Australian Bureau of Statistics (ABS).  This occurs on 1 February, 1 May, 1 August, and 1 November each year. 

Council will confirm the fees payable upon determination of your application. 

You can view the list of current xls format Contribution rates - Nov 2011 (47.00 KB) for Wyong Shire. 

When are contributions payable? 

Payment of contributions is required at specific points of the development process. For development consents:

  • Involving subdivision, payment is required prior to the release of the Subdivision Certificate
  • Involving building work, payment is required prior to the release of the first Construction Certificate
  • Involving both subdivision and building work, payment is required prior to the release of the Subdivision Certificate or the first Construction Certificate, whichever occurs first
  • Where no Construction Certificate or Subdivision Certificate is required, payment is required prior to issue of the first Certificate of Occupancy

Contributions for Granny Flats 

At the Council meeting held on 8 February 2012, it was resolved to provide a framework through which Section 94 contributions for granny flats is to be applied (on a trial basis until September 2012).

For this purpose, a “granny flat” has been defined as a secondary dwelling with a floor area of less than 60m2.

In regard to Council’s decision and current legislation, the framework is outlined as follows:

  • Complying Development: legislation does not permit the waiving of contributions for granny flats, thus certifying authorities (including Council) are required to apply Section 94 contributions in any Complying Development Certificate issued in areas where Council’s adopted contributions plan contains a provision requiring them to do so.  All Council’s adopted contribution plans contain such a provision except for the districts of Toukley, The Entrance, Warnervale/Wadalba, and Wyong.
  • Development Application: the application will be referred to the elected Council for determination, giving the elected Council the ability to determine whether or not a condition requiring payment of Section 94 contributions is to be imposed.

How are contributions used? 

Contribution funds are used by Council to provide infrastructure and facilities generally in accordance with the works program contained in each plan.  The priorities for the plans are outlined in Council’s Strategic Plan 2011-2015. 

Some of the major commitments for 2011-12 include:

  • $2.1 million for the completion of Hamlyn Terrace Community Centre and playing fields
  • $2.5 million to commence the upgrade to Minnesota Road, Hamlyn Terrace
  • $1 million for the Warnervale Town Centre access road  

Section 93F of the Environmental Planning and Assessment Act, 1979, refers to Voluntary Planning Agreements (VPAs). A VPA is a voluntary arrangement between a developer and one or more Council’s and/or other planning authorities, where the developer agrees to:  dedicate land free of cost, pay a monetary contribution or provide any other material public benefit, or any combination of them. This will be used or put towards public infrastructure or another public purpose. Council’s pdf format Planning Agreements Policy (48.20 KB) sets out the principles and procedures relating to the use of Planning Agreements. 

Additional information can be obtained within the:

Works-In-Kind Agreements 

A Works-in-Kind (WIK) Agreement is an arrangement between a developer and Council under which the developer covers works or a facility that is included in a contributions plan. This is outlined as a condition of development approval. The agreement is instead of the part or full payment of a monetary contribution or dedication of land, such as through the terms of a Material Public Benefit (MPB).  

A MPB can consist of either works-in-kind (works that are included in a contributions plan) or for the developer to provide certain public amenities or services that are not scheduled within a contributions plan. This is instead of the part or full payment of either a monetary contribution or the dedication of land, and is outlined as a condition of development consent.   

A works in kind agreement should be executed prior to the issue of development consent. 

Additional information can be viewed within doc format Template for Works-in-Kind Agreement (148.00 KB) and  Council’s DOC format Register of Works-in-Kind Agreements (84.50 KB).