Local infrastructure contributions, also known as developer contributions, help address the needs of a growing population.
Under the Environmental Planning and Assessment Act 1979 and the Local Government Act 1993, NSW councils can levy developers for contributions towards increasing public infrastructure or providing new facilities.
There are two forms of development contributions:
- Section 7.11 contributions are charged where there is a demonstrated link between the development and the infrastructure to be funded. The Council prepares contributions plans which specify what infrastructure will be provided and approximately how much it will cost. This is used to calculate a contribution rate, usually charged per dwelling or per square metre.
- Section 7.12 levies are an alternative to section 7.11 contributions and charged as a percentage of the estimated cost of the development.