A Section 94 Plan (S94) is a funding mechanism set out under Section 94 of EP&A 1979. It lets Council levy funds from developers to build the extra public amenities and services that will be required as a result of the development.
This is determined by how many more residents or workers a new development will bring to the area. A new three bedroom house replacing an old three bedroom house won’t attract any fee at all, while a new apartment block where a small house used to be will.
The amount paid is determined by nexus. Nexus is the relationship between the type of development and the extra demand on public resources it will place. This is why residential properties attract higher funds; residents use more of an area’s amenities than visitors.
If Council wants to levy a S94 contribution, it has to prepare a Contributions Plan. When the plan is formally adopted it becomes a public document that outlines the process for collecting, administering and spending the funds.
S94 contribution rates have recently been revised to the current Consumer Price Index.
Revised S94 Rates - Valid July 2008 to June 2009 - 48 KB
The new rates will apply to:
- All development consents determined after 30 June 2008.
- Any undetermined or future DAs.
- Any S94 payment made more than twelve months after the original consent was issued.
The contribution rate is determined using the following formula:
Adjusted Contribution Rate = Previous Contribution Rate X Current CPI/Previous CPI
Current CPI = Consumer Price Index (Sydney, all groups) published by the ABS.
Previous CPI = Consumer Price Index (Sydney, all groups) published by the ABS for the year last published at the date the plan was adopted and thereafter at the time of the previous adjustment.
These are the current contribution plans in force, incorporating the CPI revision effective 1 July 2008: