Chatswood CBD Developer Contributions Levy

Proposal for a 3 per cent fixed levy development contribution for Chatswood CBD

The Planning legislation allows Councils to levy contributions from developments that increase the demand for public works and services. This can be done as a levy that varies by adding contributions for various elements or a fixed levy based on a percentage of development cost.

Council is seeking government approval for Council to fund infrastructure and other public facilities for Chatswood CBD using a fixed development contribution levy of 3 percent. These facilities are required to maintain and grow the Centre’s capacity for employment, housing and economic development under the Metropolitan Strategy and to fulfil its role within the Greater Sydney Area.

The following is the Executive Summary from the Council’s submission to the Department of Planning.

Executive Summary

  1. Willoughby Council is proposing to significantly increase the development potential for premium grade office projects in the Chatswood CBD through a new LEP. This will create jobs in the construction industry, provide for office employment growth and take advantage of the new bus-rail transit services for employees.
  2. Chatswood CBD should be correctly classified as a "Sub-regional" centre not a major centre under the Metropolitan Strategy.
  3. Chatswood CBD must be competitive with other centres in the "global arc" to attract development. It is becoming increasingly difficult to attract major premium grade office developments in Chatswood compared to North Sydney and Macquarie Park.
  4. As the economic situation eases, Council wants to position Chatswood with plans and development provisions to capitalise on the key drivers that make Chatswood attractive to business - proximity to a qualified labour pool, good transit access and access to regional arterials, its identity as a sub-regional business centre, good urban design and street amenity, competitive land values and good infrastructure.
  5. Chatswood however, has areas of poor streetscape/urban design, there are capacity constraints on Pacific Highway and intersections, degraded stormwater and other infrastructure, need to retrofit areas following the Interchange project (the Mall, Railway Street and Thomas Lane) and provision of expanded open space and community facilities to meet projected demand in the CBD. (7,000 new employees; 3,000 new residents).
  6. In order to fund the necessary works, Council proposes that an indirect levy (S.94A) of 3 percent is needed.

Council’s detailed submissions to the Department of Planning on this matter can be viewed below:

Government Approval

Council has been advised that the Council's proposal has been supported by the Government.