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NSW Department of Planning, Industry and Environment
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Certainty sought for compliance funding

The NSW Government is reforming the compliance funding system as part of reforms to build a faster, simpler, modern and fair planning system that makes things happen.

 

Review of compliance levies

The NSW Government has undertaken a review of compliance levies charged by councils to create a more certain, consistent and transparent planning system. 

 

The changes remove unnecessary levies on development applications.

 

The new framework provides councils with the resources needed to ensure builders are following the rules, while minimising the impact on those who seek to do the right thing.

 

We consulted with councils, industry and stakeholders to develop the new compliance levy framework.

 

What are the changes?

The key changes being introduced are:

  • as of 16 July, no new council will be permitted to charge compliance levies;
  • for the 29 councils that do currently charge fees, there will be a transitional period that allows them to continue collecting the levies until 31 December 2021;
  • changes to simplify Compliance Cost Notices take effect from 27 October to make them simpler and more clear
  • compliance cost notices have been simplified to encourage transparency, consistency and certainty for councils. Compliance cost notices are issued alongside a compliance order to recoup costs once a builder has been found to be breaking the rules.

 

Compliance cost notices

This new fairer system is underpinned by changes to the compliance cost notices.

 

A compliance cost notice allows councils to recover the reasonable cost and expenses that they have incurred in connection with compliance activities.

 

The NSW Government has made changes to these notices to make cost recovery easier for certain council enforcement activities.

 

This new framework provides councils with the resources needed to ensure builders are following the rules, while minimising the impact on those who seek to do the right thing.

 

These changes are now in effect and mean that:

  • councils will now be able to collect $750 for costs associated with a notice of intention to issue an order
  • councils will be able to collect the reasonable costs and expenses associated with an investigation, with the removal of the previous limit of a maximum of a $1,000
  • the administrative requirements have been simplified so that councils need only list the costs and expenses incurred.

 

What happens next?

An amendment will be required to the Environmental Planning and Assessment Act (the Act) to allow a levy on complying development certificates to be charged. The NSW Government supports a well-funded and efficient regime for council compliance activities and will look to amend the Act at the first available opportunity.

 

More information

Please read the frequently asked questions (PDF, 462 KB)

Page last updated: 28/10/2021