Developer contributions cover infrastructure relating to existing and planned water and sewer such as treatment plants, pumping stations, reservoirs and trunk mains.

Transfer-main

What are Developer Contributions?

Developer Contributions (also known as Section 64 Contributions) are upfront payments levied by Shoalhaven Water to recover part of the infrastructure costs.

What type of developments may be subject to Developer Contributions?

Under the Water Management (General) Regulation 2018, Section 226 outlines that developer contributions may be subject to:

  • The erection, enlargement or extension of a building or the placing or relocating of a building on land,
  • The subdivision of land,
  • The change of use of land or of any building situated on the land.

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 applicant or 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, manufactured housing estate, tourist developments)
  • Floor area (eg, commercial and industrial developments)
  • Number of persons (eg, church, entertainment centre, child minding facility)
  • Number of units (eg, washing machines for a laundromat or beds for a hospital)
  • Water use (eg, where the development is a high-water user)
  • A combination of the above for a diverse/complex development

Note: the ET factor for water supply may be different to the ET factor for sewerage.

Amount payable

When you receive a Water Development 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 in the Water Development Notice. 

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.

What happens if Developer Contributions are not paid?

If developer contributions are not paid at the appropriate stage of a development, Shoalhaven Water:

  • will not issue a Certificate of Compliance, and/or
  • may pursue legal action for the payment of the outstanding developer contributions.