Development Contributions
How are development contributions calculated?
Development contribution amounts come from our past and future spending on infrastructure that offers space for further growth. We calculate the amount of capital expenditure that is being caused by, or is of benefit to, new development and growth. We then divide this expenditure by the amount of development that is expected to take place. A development contribution is payable for each additional ‘unit of demand’ created for the services provided in the area or ‘catchment’ in which it falls.
When a building has been removed or demolished, a ‘credit’ for one unit of demand will apply to the site and the amount will be offset against any future development of the site.
How much will I have to pay?
The development contributions you will be required to pay depends on the type of development you are undertaking and where it is located. For example, if you are developing in an area with no Council water supply then you will not be charged for that infrastructure component of the development contributions. Reduced units of demand are applied to certain development such as units/accommodation with one bedroom or less, because they create less demand on infrastructure. This means they will pay less development contributions.
Development contributions collected for non-residential development will be used to fund infrastructure for water, wastewater, stormwater and roads. Development contributions collected for residential development will be used for the same, and also for solid waste and community infrastructure. Community infrastructure includes things like libraries, swimming pools and reserves.
The fees for one unit of demand are set out on page 10 of the Development Contributions Policy 2024.