Development Contributions

Council is able to obtain funding for infrastructure and facilities through any of the following:

  1. Section 7.11 Contributions – a nexus based funding mechanism under Section 7.11 of EP&A Act 1979, stipulating that s7.11 contributions can only be charged for the proportion of demand that the new development will generate.

  2. Section 7.12 Contributions – a funding mechanism under Section s7.12 of the of EP&A Act 1979 to require the payment of a fixed levy based on a percentage of estimated development cost

  3. Voluntary Planning Agreements (VPAs) - under section 7.4 the EP&A Act 1979, a Planning Agreement is a ‘voluntary agreement or other arrangement’ between ‘developers’ and ‘planning authorities’, to which the developer can provide public benefits in the form of a monetary contribution; dedicate land free of cost; material public benefits; or any combination of the above, towards public purposes.

Section 7.11Section 7.12 of the Environmental Planning and Assessment Act 1979 allow Council to collect developers’ contributions towards public amenities and services required as a consequence of development. This may be the provision of new facilities for an area or the expansion of existing facilities where an area is growing.

Changes to Council’s Development Contributions apply from 4 July 2019.

Effective on 4 July 2019, the new Willoughby Local Infrastructure Contributions Policy 2019 and the Willoughby Local Infrastructure Contributions Plan 2019 commence to operate.

Simultaneously, Chatswood CBD section 94A Development Contributions Plan 2011 and Willoughby City section 94A Development Contributions Plan 2011, cease to apply to Willoughby Council.

  1. WLIC Plan (s7.11 / s7.12)
  2. Section 94A Plans (Repealed)
  3. VPAs

Willoughby Local Infrastructure Contributions Policy and Plan 2019

Willoughby Local Infrastructure Contributions Policy and Plan 2019 which takes effect from 4 July 2019 is a mix of section 7.11 and 7.12 contributions that applies to the whole Willoughby Council Area. The Policy and Plan outline the process for collecting, administering and spending the funds.

Contributions collected by Council will be used to fund the provision, extension or augmentation of public facilities, or towards recouping the cost of their provision, extension or augmentation.

pdf format Willoughby Local Infrastructure Contributions Policy 2019 outlines the purpose, principals, application and policy statement of the Plan 2019 in a summarised format. 

Under the legislative framework,  pdf format Willoughby Local Infrastructure Contributions Plan 2019 authorises a condition within a Development Consent or a Complying Development Certificate (CDC) to require either the payment of s7.11 or s7.12 contributions. This Plan:

  • contains the relevant tables of the contributions types (either s7.11 or s7.12) and the applicable rates as they apply to different types of development;
  • details when contributions will be imposed on developments and how and when developers can settle their development contributions obligations;
  • sets out the infrastructure works in respect to population demands which formed the basis of the works schedule;

What Contributions Rates Apply?

Depending on the type of development, either s7.11 or s7.12 contributions will apply subject to the notes below:

Section 7.11 contribution rates

(applies to residential development including subdivision resulting in additional dwellings / lots)

Per resident*

Per secondary dwelling or seniors living self-contained dwelling

Per bedsit, studio (Apartment Type) or 1 bed dwelling

Per 2 bed dwelling

Per 3 or more bed dwelling / Per lot

$7,333.75

$11,045.37

$11,045.37

$15,544.09

$20,000.00**

* relevant to boarding houses, group homes and hostels

** Capped at $20,000 as per Ministerial Direction (issued on 21 August 2012)

Section 7.12 levy rates

(applies to non-residential development & residential development not resulting in additional dwellings / lots)
e.g. alts & adds or replacing an existing single dwelling house etc.

Development with cost of works:

For developments WITHIN Chatswood CBD area

For developments OUTSIDE Chatswood CBD area

= or < $100,000

Nil

Nil

$100,001 to $200,000

0.5% of that cost

0.5% of that cost

$200,001 to $250,000

1% of that cost

1% of that cost

$250,001 or >

3% of that cost

1% of that cost

Notes:

  1. mixed use development consists of a residential component will either be subject to s7.11 or s7.12 whichever yields the greater amount.
  2. The s7.12 contributions rates operate similarly to what Council had been operating under the repealed s94A Plans. The contribution amount is subject to the applicable percentage rates within or outside the pdf format Chatswood Central Business District area.

To find out the details of applicable contribution rates for specific types of development, see Tables 1, 3 & 4 of the pdf format Willoughby Local Infrastructure Contributions Plan 2019.

For Applications subject to s7.12 Contributions

Clause 25J of the Environmental Planning and Assessment Regulation 2000 sets out how the proposed cost of carrying out development is to be determined in relation to the s7.12 levy.

A cost summary report or a detailed cost summary report as provided in the Plan must accompany each DA and CDC Application.

Transitional Provisions

This Plan only applies to Development Application (DA) or CDC applications lodged on and after the effective date of this plan, being 4 July 2019.

This Plan does not apply to DA or CDC applications that have been lodged, but remain undetermined prior to 4 July 2019. Development contributions required under Chatswood CBD section 94A Development Contributions Plan 2011 and Willoughby City section 94A Development Contributions Plan 2011 (now repealed) continue to apply to these applications.

Exemptions

No contribution is payable for the following types of developments:

  1. Development for the purpose of the adaptive re-use of an item of environmental heritage;
  2. Public infrastructure to be carried out by or on behalf of any public authority including the Council
  3. Social housing and affordable housing;
  4. Development for the purposes of any form of seniors housing defined in SEPP (Housing for Seniors or People with a Disability) 2004 that is provided by a social housing provider;
  5. Development for public purposes that is provided by a registered charity;
  6. Development exempted from section 7.11 contributions or section 7.12 levies by way of a direction made by the Minister for Planning under section 7.17 of the EP&A Act 2019;

Chatswood CBD section 94A Development Contributions Plan 2011 & 
Willoughby City section 94A Development Contributions Plan 2011 (both repealed)

Chatswood CBD section 94A Development Contributions Plan 2011 and Willoughby City section 94A Development Contributions Plan 2011now repealedonly apply to any Development Applications and Complying Development Certificate applications that have been lodged but remain undetermined prior to 4 July 2019.

The  pdf format Chatswood Central Business District Section 94A Plan applied to  pdf format Chatswood Central Business District and the following levies applied to developments, based on the estimated cost of development:

  • up to and including $100,000 will be subject to no contribution levy. 
  • valued between $100,001 and $200,000 will be subject to a levy of 0.5%.
  • valued between $200,001 and $250,000 will be subject to a levy of 1%.
  • valued over $250,000 will be subject to a levy of 3%.

The  pdf format Willoughby City Section 94A Plan December 2011 applied to Willoughby Council area outside the Chatswood Central Business District (CBD) Area and the following levies applied to developments, based on the estimated cost of development:

  • up to and including $100,000 will be subject to no contribution levy.
  • valued between $100,001 and $200,000 will be subject to a levy of 0.5%.
  • valued over $200,000 will be subject to a levy of 1%.

Voluntary Planning Agreements

A Voluntary Planning Agreement (VPA) is an agreement entered into by a planning authority (such as Council) and a developer.

Council has a Voluntary Planning Agreement Policy 2013 which outlines the terms on which a VPA might be entered into so that the community and applicants know Council’s approach and the public process that would be followed.

pdf format Voluntary Planning Agreement Policy 2013

A Draft Willoughby Planning Agreement Policy & Procedures Manual went on public exhibition in January 2019. The documents suggest revisions and updates the existing Voluntary Planning Agreement (VPA) Policy 2013 to present a more transparent process for accepting, negotiating and valuing public benefits, including making explicit Council’s position on value capturing contributions associated with the process of planning proposals.

For more information, visit Council’s Have Your Say webpage here.