Section 94 Contribution Plans (Section 94 of the Environmental Planning and Assessment Act 1979) enable local councils or other consent authorities to levy contributions from developers so that essential local infrastructure is delivered to the public. This includes roads, stormwater facilities and public open spaces which become required as a result of housing growth.
The LIGS will continue the funding of local infrastructure in the following eligible precincts (LIGS ‘transition areas’):
Changes to the cap on local infrastructure contributions
Currently s94 contributions are capped at $30,000.00 per dwelling in greenfield areas and $20,000.00 per dwelling across the rest of NSW.
For LIGS transition areas
The caps will be lifted over the next 3 years to:
The above illustrates the NSW Government’s plan to phase out the LIGS over the next 3 years with the intention of LIGS funding to cease completely by 1 July 2020.
For other areas
In areas where a contributions plan is proposed that exceeds the current existing threshold caps at $30,000.00 in greenfield areas and $20,000 in infill areas, the council will be able to have the plan assessed by IPART (Independent Pricing and Regulatory Tribunal).
Effect of new s94 Direction
This reform has implications for builders and developers who will incur the increased relevant contribution caps. The LIGS looks to direct contribution fees imposed on builders and developers towards infrastructure initiatives. This will form part of the feasibility and costings and be include in the resale calculations.
Madison Marcus contacts:
Should you require further information or clarification please contact:
Denis Hall, Director – Real Estate & Developments
+61 2 9762 0424
Paul Jayne, Partner – Planning, Enviornment & Government
+61 2 9762 0483
Madison Marcus Law Firm produced this article. It is intended to provide general information in summary form on legal topics, current at the time of first publication. The contents do not constitute legal advice and should not be relied upon as such. Formal legal advice should be sought in particular matters.