Development Contribution

Council is able to obtain funding for infrastructure and facilities through:

  1. Section 94 Contributions
  2. Section 94A Contributions, and
  3. Voluntary Planning Agreements (VPAs).

Changes to Council’s Development Contributions apply from 1 February 2012.

Section 94 & Section 94A of the Environmental Planning and Assessment Act 1979 allows Councils to levy developers for 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.

The s94 Contributions plans and s94A Contributions plans and s94A are public documents that outline the process for collecting, administering and spending the funds.

  1. Section 94A
  2. Chatswood CBD 94A
  3. Section 94
  4. VPAs

Willoughby City Section 94A Contributions Plan 2011

The Willoughby City Council Section 94A Development Contributions Plan 2011 which takes effect from 1 February 2012 authorises a condition of Development Consent or a Complying Development Certificate to require the payment of a fixed levy based on a percentage of development cost.

Levies paid to the Council will be applied towards the provision, extension or augmentation of public facilities, or towards recouping the cost of their provision, extension or augmentation.

The pdf format Willoughby City Section 94A Plan December 2011 applies to the whole of the Willoughby City area, except the Chatswood Central Business District. The plan replaces Council’s existing Section 94 contributions plans for the City of Willoughby other than the Chatswood CBD where the existing Section 94 plans still apply.

The Willoughby City S94A Plan applies the following levies to development (based on the estimated cost of development):

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

Transitional Provisions
The Plan does not apply to development applications and complying development applications that have been lodged, but remain undetermined prior to 1 February 2012.  Development contributions required under Willoughby City Council Section 94 Contributions Plans (now repealed) and listed below continue to apply to these development applications.


Chatswood Central Business District Section 94A Contributions Plan 2011

Chatswood Central Business District Section 94A Development Contributions Plan 2011 which takes effect from 27 July 2012 authorises a condition of Development Consent or a Complying Development Certificate to require the payment of a fixed levy based on a percentage of development cost.

Levies paid to the Council will be applied towards the provision, extension or augmentation of public facilities, or towards recouping the cost of their provision, extension or augmentation.

The pdf format Chatswood Central Business District Section 94A Plan applies to pdf format Chatswood Central Business District. The plan replaces Council’s existing Section 94 contributions plans.

The Chatswood Central Business District S94A Plan applies the following levies to development (based on the estimated cost of development):

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

Transitional Provisions
The Plan does not apply to development applications and complying development applications that have been lodged, but remain undetermined prior to 27 July 2012.  Development contributions required under Willoughby City Council Section 94 Contributions Plans (now repealed) and listed below continue to apply to these development applications.

Exemptions
No levy is payable where development is:

  1. for the purpose of disabled access;
  2. for the sole purpose of affordable housing;
  3. for the purpose of reducing the consumption of mains-supplied potable water, or reducing the energy consumption of a building;
  4. for the sole purpose of the adaptive reuse of an item of environmental heritage, or 
  5. for other than the subdivision of land, where under section 94 of the Act has been imposed under a previous development consent relating to the subdivision of the land on which the development is proposed to be carried out.

Cost Summary Report
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 S94A levy.

A cost summary report or a detailed cost summary report as provided in the Plan must accompany each Development Application and Complying Certificate Application.

For proposed development cost that is up to and including $500,000 
pdf format Cost Summary Report

For proposed development cost that is in excess of $500,000
pdf format Registered Quantity Surveyor’s Detailed Cost Report


Section 94 Contributions

The following Section 94 Plans, which are now repealed, apply to any development applications and complying development applications that have been lodged but remain undetermined prior to:

27 July 2012 – for proposals within Chatswood Central Business District and

1 February 2012 – for any proposals within the remainder of the Willoughby Local Government Area.

Development contributions required under Willoughby City Council Section 94 Contributions Plans listed below continue to apply to these development applications.

A Section 94 Plan (S94) is a funding mechanism set out under Section 94 of EPA 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.

The S94 contribution rates have recently been revised to the current Consumer Price Index.

pdf format Revised Section 94 Contribution Rates – 2014-2015

The new rates will apply to:

  • All relevant development consents determined after 30 June 2014.
  • 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.


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.