Local Infrastructure Contributions (Development Contributions)

Under the NSW Environmental Planning and Assessment Act 1979 and accompanying Regulation, local infrastructure contributions provide funding for local infrastructure including community facilities, libraries, new open spaces, open space embellishment, stormwater detention and public domain improvements.

Local infrastructure contributions (either s.7.11 contribution or s.7.12 levies) are generally payable when:

  • Demand is created through subdivision of land, additional housing (increased density such as terraces villas, townhouse and apartments, secondary dwellings, boarding houses) – a direct contribution under Section 7.11 is required to fund the need for more infrastructure. or,
  • Where development does not relate to increase residential density (as above) is carried out, an indirect contribution under Section 7.12 (based on a fixed percentage) is required to fund new or improved infrastructure.

    A Section 7.12 development levy is not payable when: 

  • The proposed cost of development is less than $100,000.
  • One dwelling is proposed on a recently subdivided lot where a development contribution was paid at time of subdivision.
  • Retail or commercial fit-out is proposed with no expansion or intensification of use.

The Fairfield City Local Infrastructure Contribution Plan 2023 was recently approved by Council and came into effect on 26 February 2024.

 

Local Infrastructure Contributions Plan 2023

Fairfield City Local Infrastructure Contributions Plan 2023(PDF, 4MB)

Fairfield City is forecast to grow by over 43,000 additional residents and almost 17,600 new dwellings over twenty (20) years (2021-2041).

The Local Infrastructure Contribution Plan 2023 identifies improvements to existing and new local infrastructure to meet the needs of the Fairfield City community over the next 20 years, including parks and open space, community facilities (libraries, cultural facilities), recreational facilities (sports fields, leisure centres, multi-purpose indoor courts), cycleways and walking tracks, stormwater detention and public domain improvements in the town centres.

The new Local Infrastructure Contribution Plan 2023 will enable funding of local infrastructure by requiring development to contribute to the cost through either s.7.11 direct contributions or s.7.12 indirect levies. These contributions and levies will provide an important income stream to assist with the delivery of local infrastructure to meet the needs of a growing population.

Section 7.11 Local Infrastructure Contributions are levied on residential development creating new demand for facilities and infrastructure. Developments that create new demand include (but are not limited to):

  • Attached and semi-detached dwellings (duplexes, triplexes, narrow lot development including those proposed on existing narrow lots);
  • Dual occupancies;
  • Multi dwelling housing (town houses, villas, terraces, and manor homes)
  • Residential apartments (residential flat buildings and mixed-use developments including residential)
  • Residential subdivision
  • Boarding houses and group homes, and
  • Secondary dwellings (granny flat)

Section 7.11 Local Infrastructure Contributions are also levied for development creating new demand for carparking in certain centres, including:

  • Canley Heights Town Centre; and
  • Cabramatta Town Centre

Section 7.11 Local Infrastructure Contributions currently do not apply to land in Horsley Park and Cecil Park. Development within this area will be levied a Section 7.12 Local Infrastructure Contribution when the development exceeds the cost threshold.

Section 7.12 Local Infrastructure Contributions are levied on developments where Section 7.11 does not apply, such as knock-down rebuilds, retail and commercial development, industrial, and other non-residential development.

Section 7.12 Development Contributions are calculated as a percentage of the total cost of development, as below:

Local Infrastructure Contributions are levied on both development applications (DA) and complying development certificate (CDC) applications assessed by Council and Private Certifiers.

Public Exhibition of the New Draft Local Infrastructure Contribution Plan 2023

The Public Exhibition period is now closed


At its Outcomes Committee meeting held on 11 July 2023, Council resolved to publicly exhibit the new draft Local Infrastructure Contributions Plan 2023. The public exhibition is in accordance with the Environmental Planning & Assessment Act 1979 and clause 213 of the Environmental Planning & Assessment Regulation 2021. A copy of the Outcomes Committee report can be viewed via the link below:

Outcomes Committee report (11 July 2023)

Draft Local Infrastructure Contribution Plan 2023

Fairfield City is forecast to grow by over 43,000 additional residents and almost 17,600 new dwellings over twenty (20) years (2021-2041).

The draft Local Infrastructure Contribution Plan 2023 identifies improvements to existing and new local infrastructure to meet the needs of the Fairfield City community over the next 20 years, including parks and open space, community facilities (libraries, cultural facilities), recreational facilities (sports fields, leisure centres, multi-purpose indoor courts), cycleways and walking tracks, stormwater detention and public domain improvements in the town centres.

The new draft Local Infrastructure Contribution Plan 2023 will enable funding of local infrastructure by requiring development to contribute to the cost through either s.7.11 direct contributions or s.7.12 indirect levies. These contributions and levies will provide an important income stream to assist with the delivery of local infrastructure to meet the needs of a growing population.

Once approved, the draft Local Infrastructure Contribution Plan 2023 will replace the two (2) current plans: Fairfield City Direct (Section 7.11) Development Contributions Plan 2011 and Fairfield City Indirect (Section 7.12) Development Contributions Plan 2011.

Consultation Material:

A copy of the draft Local Infrastructure Contribution Plan 2023 and Council report with supporting information can be viewed via the links below and in hard copy at Council’s Administration Centre at 86 Avoca Road, Wakeley during office hours (8.30am to 4.30pm Monday to Friday). Council staff will be available to answer questions.

A copy of the draft Local Infrastructure Contribution Plan 2023 can be viewed on the link below.

Draft Local Infrastructure Contribution Plan 2023 (Section 7.11 & 7.12)(PDF, 4MB)

Supporting Information

The following studies and strategies have informed the local infrastructure planning and can be viewed through the links below:

Town Centre Public Domain Plans:

 

Public exhibition period: The Draft Local Infrastructure Contributions Plan 2023 will be on public exhibition from Monday 7 August to Friday 8 September 2023 inclusive.

Submissions due by: Written comments are welcome before the close of business Friday 8 September 2023 to Fairfield City Council, PO Box 21, Fairfield  NSW  1860 or email to mail@fairfieldcity.nsw.gov.au. Please quote Ref No 21/10680 when making your submission.

File number: 21/10680

Questions: Council staff will be available at the Administration Centre during office hours (8.30am to 4.30pm Monday to Friday) to answer questions or can be contacted on 9725 0159 during office hours.

Confidentiality of Submissions: Any submissions made to Council are publicly accessible under the provisions of the Government Information (Public Access) Act 2009. The content of your submission will not be kept confidential; however, you may request for your name and address to be kept private and censored from any future publications.

Disclosure of Political Donations and Gifts: If you intend to make a submission you may be affected by the requirements of s10.4 (Disclosure of political donations and gifts) of the Environmental Planning and Assessment Act 1979. Please refer to Political Donations and Gifts Disclosure Statement or phone 9725 0222 for further information on the requirements to disclose political donations and gifts to Councillors and/or Council employees.

Political Donations and Gifts Disclosure Statement

 

NSW Government’s Housing and Productivity Contribution

On 28 June 2023, the NSW Parliament passed the Environmental Planning and Assessment Amendment (Housing and Productivity Contributions) Act 2023. The Housing and Productivity Contribution (HPC) is part of the contributions reform introduced by the NSW Government to support delivery of timely infrastructure.

The Housing and Productivity Contribution is separate to Council’s Local Development Contributions which will continue to apply. 

When will the contribution start?

The Housing and Productivity Contribution will start on 1 October 2023 after the Ministerial planning order is made.

The new scheme will apply to development applications made on or after the commencement date. If a contribution is required, it will be imposed as a condition of development consent. This includes applications for a complying development certificate, as well as any new development application that follows a withdrawal or refusal (see clause 25 of the order).

An application is made once it has been submitted in the NSW Planning Portal and the application fees have been paid.

Where will the contribution apply?

The Housing and Productivity Contribution will apply in the Greater Sydney, Illawarra-Shoalhaven, Lower Hunter and Central Coast regions.

Fairfield is within the Greater Sydney Region and therefore the Housing Productivity Contribution will apply.

What types of development will the contribution apply to?

The Housing and Productivity Contribution applies to development for the purposes of:

  • Residential development
  • Commercial development
  • Industrial development

What will the contribution rates be?

Greater Sydney
Development Class Amount Unit

Residential subdivision

$12,000

New dwelling lot

Residential strata subdivision

$10,000

New strata dwelling lot

Non-strata multi dwelling development

$10,000

New non-strata dwelling

Commercial development

$30

Square metre of new GFA

Industrial development

$15

Square metre of new GFA

 

When will the payment of the Housing and Productivity Contribution be required to be made?

Residential Subdivision only – the contribution is to be paid before the first subdivision certificate is issued.

For all other types of applications, the contribution is to be paid before:

  • the issue of the first construction certificate in relation to the development, and
  • if no construction certificate is required for the development – before the commencement of any work authorised by the development consent or complying development certificate.

For larger projects including large greenfield subdivisions and concept development applications, the payment can be divided into stages consistent with the development approval.

How to make the Housing and Productivity Contribution payment?

Payments will be required to be made through the NSW Planning Portal.

What types of development will be exempt from paying a Housing and Productivity Contribution?

The Housing and Productivity Contribution is not required for development that does not generate any additional infrastructure demand. This includes replacement residential dwellings (knock down rebuilds) and refurbishment of existing commercial or industrial developments that does not increase the gross floor area.

The Housing and Productivity Contribution is also not required for any of the following types of development (see schedule 2 to the order):

  • public housing provided by on behalf of the Land and Housing Corporation or Aboriginal Housing Office,
  • affordable housing that:

–is provided by or on behalf of a social housing provider (within the meaning of the Housing SEPP), or

–is required to be managed by a registered community housing provider as a condition of development consent

  • dwellings required to be dedicated, free of cost, for the purpose of providing affordable housing under section 7.32 of the Act,
  • supportive accommodation within the meaning of section 34 of the Housing SEPP,
  • specialist disability accommodation within the meaning of the Commonwealth National Disability Insurance Scheme (Specialist Disability Accommodation) Rules 2020,
  • boarding houses,
  • group homes,
  • seniors residential care facilities and hostels under the Housing SEPP, or
  • development in the Port Botany, Port Kembla and the Port of Newcastle lease areas

 

What are the Transition Arrangements?

The Housing and Productivity Contribution will be phased in and discounted for the first two years. The following discounts apply at the time the payment is made:

 

Time period Year Discount Rate

Initial period

1 October 2023 – June 2024

50%

Second year

July 2024 – June 2025

25%

Third year onwards

July 2025 +

0%

 

Will local contribution plans still apply?

Yes, there is no change to the way councils levy local contributions.

Who to contact for enquires?

NSW Department of Planning email: hpc.enquiry@planning.nsw.gov.au

 

Repealed Local Infrastructure Contributions Plans

Fairfield City Council at its meeting held on 28 November 2023 resolved to adopt the Fairfield City Local Infrastructure Contribution Plan 2023. Upon commencement of the Local Infrastructure Contributions Plan 2023 (26 February 2024) the following contributions plans were repealed:

 

When a Council repeals a contribution plan, the plan no longer applies to the land, except where an existing consent condition applies. If a consent condition is modified, Council can no longer consider the repealed plan and must consider the new contribution plans that apply to the land.

 

Development Contributions Register

Development Contributions Register

Clause 217 of the Environmental Planning and Assessment Regulation 2021 states:

  1. A council that imposes development contribution conditions or development levy conditions on development consents must keep a contributions register.
  2. The contributions register must contain the following —
    1. details of each development consent subject to a development contribution condition or development levy condition, including the following—
      1. the development application to which the development consent relates,
      2. the relevant consent authority,
      3. the day on which the development consent was granted,
    2. the nature and extent of the development contribution or development levy required by the condition for each public amenity or public service, including the following—
      1. the purpose for which the contribution or levy was received,
      2. the value and location of any land dedicated or material public benefit provided,
      3. the total contribution or levy payable,
      4. the total contribution or levy received,
    3. the contributions plan under which the development contribution condition or development levy condition was imposed,
    4. the day on which the development contribution or development levy required by the condition was received, and its nature and extent.

Fairfield Council maintains a contributions register.

A copy of the contributions register is available and free of charge. As the register spans many years, persons wishing to view any aspect of the register should email mail@fairfieldcity.nsw.gov.au and request a particularly extract from the register relating to the development of interest.

Alternatively, should you wish to view the entire register, you will need to visit Council’s Administration Building at Wakeley and meet with one of our Strategic Planning Team members. To arrange this you can also email mail@fairfieldcity.nsw.gov.au.

 

Enquiries and Local Infrastructure Contribution Quotes

You can now get an online estimate of your Local Infrastructure Contributions fee:

Local Infrastructure Contributions Fee Estimator

Alternatively, to request a section 7.11 Local Infrastructure Contribution Quote for your development, or for more information, please call Council's Customer Service team on 9725 0222.

As Section 7.12 Local Infrastructure Contributions are based on a percentage of the total local infrastructure contribution, quotes are generally not provided. However, the 'cost Report- Section 7.12 Levy Form' provides guidance on what development costs to include in the calculation. This form can be found on Council's Forms and Fact Sheets page

To request a Local Infrastructure Contribution Quote for your development, or for more information, please call Council’s Customer Service team on 9725 0222.