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NSW Department of Planning, Industry and Environment
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The local infrastructure contributions system is administered by local councils as they are best placed to understand the needs of their communities.


There are two types of local contributions:

  • Section 7.11 contribution where there is a demonstrated link between the development and the infrastructure that the contribution is funding. The contribution rate is charged per dwelling or per square metre.
  • Section 7.12 levies where there does not need to be a demonstrated link between the development and the infrastructure funded from the contribution. Here, the contribution rate is charged as a percentage of the estimated cost of the development.

Process for developing a contributions plan

The main aim of a contributions plan is to spread the cost of providing infrastructure across everyone that benefits from it.




More detail on the process to be followed and the issues to be considered are provided in the Regulations and Practice Notes.


Maximum contributions

Section 7.11 contributions for residential development for some areas were capped at $20,000 per dwelling and $30,000 in greenfield areas. There is also a limited number of areas where the cap does not apply as development was well underway when the cap was introduced. There is no cap for non–residential development.

Where a contribution cap previously existed, this was increased by $5,000 on 1 January 2018 to $35,000 in greenfield areas and $5,000 to $25,000 in infill areas. From 1 July 2018, there is an annual $5,000 increase to the caps each year for two years. The caps will be removed entirely in these areas on 1 July 2020.


Contributions plans which propose rates above a threshold amount of $20,000 per dwelling and $30,000 in greenfield areas can only be levied after the Contributions Plan has been assessed by IPART against the Department's Essential Works List.  Where this occurs, development may be changed the full apportioned amount.


Section 7.12 levies are currently capped in the following way, with a small number of exceptions:


Proposed development cost Maximum percentage of development cost for the levy
Up to $100,000 Nil
$100,001 to $200,000 0.5%
More than $200,000 1.0%


Review of plans by IPART

A local infrastructure contributions plan will need to be submitted to the Independent Pricing and Regulatory Tribunal (IPART) for assessment in the following circumstances:

  • The proposed contribution rates are above the threshold of $20,00 per lot or dwelling or $30,000 for greenfield areas, and/or
  • The relevant council is seeking gap funding through the Local Infrastructure Growth Scheme.


For more information

  • All policies, practice notes and circulars related to the review of contributions plans by IPART can be found on the Infrastructure policies page
  • More information on the IPART assessment process can be found on the IPART website.

Page last updated: 17/10/2019