Section 7.12 (94A) Levy Plans
What are development contributions?
Development contributions are payments made during the course of the development application (DA) or complying development application (CDC) process to enable local government (Councils) to provide public facilities and services required as a consequence of new development.
These contributions are required to be authorised by a formal Development Contributions Plan prepared in accordance with the Environmental Planning and Assessment Act, 1979 and its Regulations, 2000.
Lithgow City Council is proposing to levy these contributions through a Section 7.12 (previously Section 94A) Development Contributions Plan.
These contributions are distinct and separate from developer contributions towards water and sewer infrastructure works that are authorised under the Local Government Act and Water Management Act.
Who pays Section 7.12 contributions?
Generally, the Section 7.12 Development Contributions Plan applies to all development within the Local Government Area that has a development cost in excess of $100,000. However there are some circumstances where land or development will or may be exempt from the Plan. These circumstances are detailed in Section C7 of the Plan.
How much do I need to pay and how is the levy calculated?
Contributions payable are based on a percentage (%) of the estimated cost of development. The percentages have been established in legislation by the NSW State Government as follows:
|Estimated Cost of Development||Percentage (%) Contribution/Levy|
|All development types valued at $100,000 or less||Nil|
|All development types valued at $100,001 and up to $200,000||0.5%|
|All development types valued in excess of $200,000||1%|
|I am building a new home||The certified estimated cost of development is||$250,000.00|
|Applicable Percentage is 1%||Required Contribution Payable is||$2,500.00|
When do I have to pay the levy?
Generally, Section 7.12 contributions must be paid prior to the release of the Construction Certificate (CC) or Complying Development Certificate (CDC).
What are the funds to be used for?
The Plan details an $10.541 million dollar works schedule to be partially funded from the development contributions levied to the value of $2.94 million dollars. This works schedule includes recreation facilikties, rural roads, village improvements and civic improvements.
Please refer to Appendix A of the Plan to view the full proposed works schedule.
The making of a development contributions plan places a financial obligation on Council to deliver the public amenities and services which it has identified and for which development contributions are then sought. In this regard, the financial expenditure outlined in the works schedule has been integrated with Council’s Operations Plan and Delivery Program and the Long Term financial Plan.
Without the significant injection of funds from the development contributions plan, many of these projects would not be able to be undertaken at all or would at the very least be significantly delayed.
When will the money collected be spent?
The works schedule in Appendix A of the Plan identifies the planned timing for expenditure for each of the projects commencing in 2015. The works schedule covers a ten year plan.
Will more than one Section 7.12 development contributions plan apply?
No. Upon commencement of this new plan all other Development Contributions Plans will be repealed.
The remaining unspent funds collected under these previous plans are rolled over into the new system and will be expended on the works schedule projects as identified.
How can I find out more information?
If you require further information please contact Council’s Policy and Planning Division on 02 63549999.