Development contributions help cover the cost of delivering infrastructure needed to support new businesses, communities and homes.
Planning agreements are a method of securing these contributions. A planning agreement is a legal agreement between a developer and a planning authority, such as the Minister for Planning and Public Spaces, or local councils.
The development contributions system operates under the Environmental Planning and Assessment Act, 1979. Planning agreements can deliver or fund:
The applicant is required to meet the cost of preparing the legal agreements.
Planning agreements with the Department of Planning, Industry and Environment are referred to as State Voluntary Planning Agreements (SVPA) to differentiate them from local council planning agreements.
As at July 2020, over $178 million in developer contributions have been collected through SVPAs.
The department works closely with state agencies and local councils to maintain a rolling pipeline of SVPA investment to support the release of new housing and employment lands in areas where contributions revenue is collected.
The SVPA program has provided $73 million in funding towards the delivery of infrastructure. This includes funding to support growth in the Western Sydney Employment Area, co-fund road upgrades in Pitt Town and funding for initial design work on projects in the Hunter Region.
A further $24 million in SVPA funding has been allocated to future projects.
The majority of SVPAs entered into by the Department relate to a clause in councils’ Local Environmental Plans, which require the developer to make satisfactory arrangements for the provision of state infrastructure to service their development. These clauses require the infrastructure (or contribution towards its cost) to be secured before a planning authority can provide consent for development.
In most cases, a planning agreement must be in effect prior to certifying that satisfactory arrangements have been made.
To assist developers to enter into a SVPA the Department has developed a digital service to expedite and streamline the process. This new online service enables developers and relevant parties to lodge and track applications with the Department online via the NSW Planning Portal.
To contact us about a proposed development that may require a SVPA, please email the team.
All SVPAs are publicly notified and made available for public feedback before they are finalised. All SVPAs currently on notification, under consideration, executed or concluded are available to view on the SVPA Register.
Page last updated: 04/03/2021