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.
In most instances the kind of developments that attract Developer Contributions are multi dwelling developments and this includes dual occupancy, commercial, industrial, subdivision developments and change of use of existing premises.
How are Developer Contributions calculated?
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 make appropriate allowances in your feasibility assessment. It is recommended that the developer contact Shoalhaven Water to obtain an idea of the likely charges to be imposed.
Charge rates 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.
Developer charges are based on an equivalent tenement (ET) loading based on the water supply and/or sewerage systems.
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
When you receive a Development Application Notice from Shoalhaven Water, the amount payable for Developer Contributions will be listed and current for the relevant financial year.
When do Developer Contributions need to be paid?
Developer Contributions must be paid prior to the issue of a Construction Certificate. 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.