The Environmental Planning and Assessment Act 1979 mandates infrastructure contribution plans to ensure that new developments contribute to the cost of local infrastructure. In order to ensure transparency and accountability Councils must maintain a register of all contributions and planning agreements, ensuring transparency in the collection and expenditure of funds. The preparation of contribution plans involves community consultation to ensure that the needs and priorities of the local community are considered. Council can prepare an adopt either (or both) a s7.11 Plan and a s7.12 Plan:
Section 7.11 Contributions
Local councils prepare detailed plans specifying the infrastructure to be provided and its cost. This helps calculate the contribution rate, usually charged per dwelling or per square meter. Under a s 7.11 plan there must be a demonstrated connection between the development and the infrastructure being funded.
Section 7.12 Contributions:
s 7.12 contribution plans provide an alternative to s7.11 contributions and are charged as a percentage of the estimated cost of the development. Unlike a s7.11, there is no need to demonstrate a direct link between the development and the infrastructure. The levy is typically up to 1% of the development cost, though some areas may charge a higher percentage.
The Strathfield Development Contribution Plans are currently active and play a crucial role in funding local infrastructure. Here are the key points:
Strathfield Council has two main types of contribution plans:
- Section 94 Plan: This plan, also known as the Direct Development Contributions Plan, covers the period from 2010 to 2030.
- Section 94A Plan: This plan, also known as the Indirect Development Contributions Plan, is indexed and capped annually.
These plans ensure that new developments contribute to the cost of local infrastructure, such as parks, community facilities, and roads Strathfield Council maintains a register of all planning agreements and contributions, which is updated regularly to ensure transparency. This includes annual financial statements showing the aggregate totals of money, land, and works received.
The plans comply with the Environmental Planning and Assessment Amendment (Development Contributions) Regulation 2021, which introduced new reporting and accounting requirements.
Council commenced a review of its Contribution Plans in 2023. Work has progressed on the preparation of a work schedule and the Draft Local Infrastructure Contributions Plan. It should also be noted that it is proposed that a s7.12 Contributions plan be prepared for the Homebush Transport Oriented Development Precinct (the TOD). The TOD s7.12 plan and the Strathfield s7.12 Plan are to be complementary with some items included in both Works Schedules and appropriately apportioned to new or existing population.
As the draft Strathfield Council Local Infrastructure Contributions Plan proposes a higher rate contribution levy it is necessary to consult and seek endorsement from the Department of Planning, Housing and Infrastructure. Ultimately approval for the plan will be obtained from the Minister of Planning and Public Spaces. The next steps in that process involve the following:
- Public exhibition of the Draft Local Contributions Plan for minimum period of 28 days.
- Preparation of a justification report for the section 7.12 Local Infrastructure Contribution Plan, including summary of submissions
- Formal request to the Minister including lodgement with the Department for consideration
- Further report to Council with update on the contribution plan and seeking resolution to adopt the plan.