Local infrastructure contributions, also known as developer contributions, are charged by councils when new development occurs. They help fund infrastructure like parks, community facilities, local roads, footpaths, stormwater drainage and traffic management.
There are 2 forms of local infrastructure contributions:
- Section 7.11 contributions: Charged where there is a demonstrated link between the development and the infrastructure to be funded. Councils prepare contributions plans that specify what infrastructure will be provided and approximately how much it will cost. This is used to calculate a contribution rate, usually charged per dwelling or per square metre. Councils that want to charge a contributions rate above the threshold set by the minister (PDF, 290 KB) must submit their plans to IPART for independent review, amend per the minister’s advice, and approve the plans. Section 7.11 was previously known as section 94.
- Section 7.12 levies: are an alternative to s7.11 contributions and are charged as a percentage of the estimated cost of the development. The maximum percentage that can be charged in most areas is 1%. There are a small number of areas that charge a higher percentage. Section 7.12 was previously known as section 94A.
Local government administers the local infrastructure contributions system – they are best placed to understand the needs of their communities. If you have questions about specific contributions plans or contribution rates, contact the relevant council.
We set the policy framework under which councils collect and administer contributions. This framework includes legislation, ministerial directions and practice notes. Links to the documents that make up the policy framework are at the bottom of this page.
Legislation
- Environmental Planning and Assessment Act 1979 – Provides the legislative framework for infrastructure contributions.
For more details see Part 7 Division 7.1 on the NSW legislation website. - Environmental Planning and Assessment Regulation 2021 – Provides further requirements relating to the making, amending and revocation of contributions plans, giving public notice and other procedural arrangements.
For more details see Part 9 on the NSW legislation website.
New reporting requirements for local infrastructure contributions
The Environmental Planning and Assessment Regulation 2021 has been amended to improve transparency and accountability in how infrastructure contributions are received and spent in NSW. The new reporting requirements will commence on 1 July 2022.
For more information on the new requirements, refer to the planning circular (PDF, 164.7 KB) and frequently asked questions (PDF, 178 KB). The amending instrument is available on the NSW legislation website.
Ministerial directions for local infrastructure contributions
Practice notes
The following practice notes are in place to help councils, applicants and the community understand the NSW infrastructure contributions system. They are designed to be read in conjunction with the Act, Regulations and ministerial directions.
| Name | Date issued | Description |
|---|---|---|
| Section 7.12 fixed development consent levies (PDF, 238 KB) | February 2021 | Practice note relating to the preparation, adoption and implementation of s7.12 plans, including criteria for metropolitan and regional councils requesting an increase to the standard maximum percentage. |
| Local Infrastructure Contributions - review by IPART (PDF, 356 KB) | January 2019 | Practice note outlining the process by which a contribution plan which has a rate above the relevant threshold is reviewed by IPART. |
| Development Contributions – Introduction (PDF, 328 KB) | July 2005 | Introduction to the practice notes. |
| Development Contributions Plans – Section 94 (now s7.11) (PDF, 932 KB) | July 2005 | Practice note relating to the preparation, adoption and implementation of s7.11 plans, previously known as s94 plans. |
Note: Practice notes on planning agreements are listed at Planning agreements policy.
Circulars
From time to time the department will issue circulars providing additional information on a variety of policy issues. If you would like to look at a particular circular, go to Planning system circulars.
Practice notes and Ministerial Directions which have been superseded are maintained for reference. You can view superseded documents relating to local infrastructure contributions policy in the list below:
| Name | Date issued | Description | Revoked by |
|---|---|---|---|
| Environmental Planning and Assessment (Local Infrastructure Contributions – Timing of Payments) Direction 2020 (PDF, 72 KB) | 25 June 2020 | To temporarily defer the payment of local infrastructure contributions and levies until the issuing of an occupation certificate for certain types of development. The direction expires on the last day of the prescribed period within the meaning of section 10.17 of the EP&A Act. | The direction expired on the last day of the prescribed period within the meaning of section 10.17 of the EP&A Act. The prescribed period ended 31 March 2022. |
| Development Contributions Plans – Section 94A (now s7.12) (PDF, 98 KB) – Practice note | December 2006 | Practice note relating to the preparation, adoption and implementation of s7.12 plans, previously known as s94A plans. | Section 7.12 fixed development consent levies (PDF, 237 KB) |
| Environmental Planning and Assessment Act 1979 Direction Under section 94E (PDF, 17 KB) (section 7.17 of the current Act) | 9 September 2009 | Exemption from payment of a contribution for development funded under Building the Education Revolution (BER) program. | Environmental Planning and Assessment (Local Infrastructure Levies) Direction 2015 (PDF, 91 KB) |
| Environmental Planning and Assessment Act 1979 Direction Under section 94E (PDF, 17 KB) (section 7.17 of the current Act) | 10 November 2006 | Development for which a s94A contribution cannot be applied and maximum percentage that can be applied. | Environmental Planning and Assessment (Local Infrastructure Levies) Direction 2015 (PDF, 91 KB) |
| Environmental Planning and Assessment (Local Infrastructure Contributions – Warriewood Valley) Direction 2011 (PDF, 117 KB) | 13 May 2011 | Capping of contributions in the Warriewood Valley (Pittwater Council). | Environmental Planning and Assessment (Local Infrastructure Contributions – Warriewood Valley) Revocation Direction 2015 (PDF, 82 KB) |