The NSW development contributions system helps provide new and growing communities across the State with appropriate infrastructure. The Environmental Planning and Assessment Act 1979 (EP&A Act) sets out how the State’s development contributions system works.
Local infrastructure such as roads, drainage, parks and essential community facilities is funded with the help of money collected under Section 94 contributions plans. These plans are named after a section in the EP&A Act which allows consent authorities (usually local councils) to levy the development process to fund local infrastructure.
Local infrastructure is delivered by local councils and provided for communities directly serviced by, or surrounding, the infrastructure.
State infrastructure is funded by the NSW Government using State infrastructure contributions and general revenue. The State infrastructure contributions only apply in certain development areas. This larger-scale infrastructure, such as regional roads or schools and TAFE colleges, is planned for by looking at regional rather than local needs.
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As part of ongoing Planning Reforms, the Premier announced a package of reforms to the development contributions system in December 2008.
The package aims to balance the cost of contributions with the need to ensure there is sufficient incentive to develop new land for housing. It includes :
- a change in the way State infrastructure contributions are calculated and collected
- the establishment of a $20,000 threshold for local development contributions and a review process related to this threshold
- the immediate cessation of some water infrastructure charges.
Planning Circular PS 08-017 details the package of reforms. 
Directions and technical advice
All ministerial directions, practice notes and planning circulars relating to the NSW Development Contributions System can be viewed here.