Certainty sought for compliance funding
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, which will be implemented in stages, from July 2021, to ensure councils have enough time to adapt to the changes.
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;
- A new levy for compliance development certificates will be introduced later in the year; and
- Compliance Cost Notices will also be 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.
A staged approach
16 July 2021
- The regulation changes have commenced to prohibit compliance levies on DAs for all councils.
- The changes include a six-month transition period to allow councils that already charge compliance levies on DAs to continue doing so until 31 December 2021.
From September 2021
- New compliance cost notice provisions will come into effect for all councils.
- A new compliance levy on CDCs will come into effect for all councils.
From 1 January 2022
- Councils may no longer charge compliance levies on DAs.
What happens next?
The department will continue to work closely with councils and the development industry to achieve a sustainable compliance levy framework that provides transparency and consistency for the sector.
Page last updated: 31/08/2021