Developer Contributions (also known as Section 64 Contributions) are upfront payments levied by Shoalhaven Water to recover part of the infrastructure costs incurred in servicing new developments or additions/changes to existing developments which impose a loading on Council’s water supply and/or sewerage infrastructure.
What sorts of developments attract these contributions?
Multi dwelling developments including dual occupancy, commercial, industrial, subdivision developments and change of use of existing premises will be assessed for developer contributions.
Generally the construction of singular residential houses and/or additions to such (eg, extra bedroom, pool, garden shed) generally do not attract these charges.
How much are these contributions?
The amount of the contributions levied will depend upon the loading that the proposed development will have on the water supply and/or sewerage systems. The greater the loading on the systems the greater the developer charges amount payable. These charges can amount to many tens of thousands of dollars and as such you will need to be aware of, and make appropriate allowances for these contributions in your feasibility assessment. The developer should contact Shoalhaven Water to obtain an idea of the likely charges to be imposed.
Charge rates may increase annually and as such the applicant/developer must be mindful that the amount payable may increase where payment is made in a future financial year (that is after the 30th June).
How are developer contributions calculated?
Generally developer charges are based on an equivalent tenement (ET) loading that a development has on the water supply and/or sewerage systems. Shoalhaven Water has and uses an Equivalent Tenement Classification table to determine the loading a proposed development will have.
Subject to the type of development proposed the following methods are used to calculate the number of ET’s:
- Number of lots (eg, residential subdivisions)
- Number of bedrooms (eg, medium density and dual occupancy developments)
- Number of sites and cabins (eg, caravan park)
- Floor area (eg, commercial and industrial developments)
- Number of persons (eg, church, entertainment centre)
- Water use (eg, where the development is a high water user)
- A combination of the above for a diverse/complex development
How do I know developer contributions are payable?
The amount of developer contributions and type are listed on the Shoalhaven Water Development Application Notice (commonly referred to as a Notice). The Notice is generally issued with the Development Consent or the Complying Development Certificate.
When do these contributions need to be paid?
Where the development requires a construction certificate to be issued for such works to commence construction, the developer contributions must be paid prior to the issue of a construction certificate (this can be issued by Council or by a Private Certifying Authority).
If the development is a subdivision then the imposed developer contributions must be paid prior to the release of the plan of subdivision.
Where the development does not require a construction certificate, eg a caravan park expansion - camp site, caravan & mobile home sites, then the imposed developer contributions must be paid as specified by Shoalhaven Water.
Subject to the type of development there can be cases where the developer contributions must be paid at the time of granting the development consent.