Home Events and news January 2009

Events and news - January 2009

Review of local contributions section 94E direction

In December 2008 the Government announced a number of reforms to the levies regime, including local government levies. The reforms aim to ensure developer levies are consistent with the Government's plan to boost housing supply and affordability.

As part of the implementation of these reforms, the Minister for Planning has issued a direction to all councils in New South Wales under s.94E of the Environmental Planning and Assessment Act. The Direction imposes a maximum amount for section 94 contributions for residential development. The Direction takes effect from 1 February 2009, although the maximum limit will not apply until 30 April 2009.

The Direction and a circular explaining to councils the effect of the Direction can be found here.

The Direction does not apply to accredited certifiers. However, the issue of the Direction may result in affected councils needing to amend their contributions plans. Accredited certifiers should therefore liaise with councils in the areas they currently work to ensure there have been no changes to applicable contributions plans, particularly as they relate to complying development.

It is envisaged that there will be very few circumstances in which accredited certifiers would be required to impose s.94 conditions on complying development certificates that exceed the maximum contribution rates referred to in the Direction (clause 3).

However, as part of monitoring the implementation of Government's reforms in this area, accredited certifiers are requested to notify the Department of Planning in the event you issue a complying development certificate which includes a condition requiring section 94 contributions that would otherwise exceed the maximum contribution rates set out in the Direction. Such notification should include details of the contributions plans relied upon for the imposition of the relevant s.94 contribution condition.

Notifications can be provided to the Building Professionals Board, who will in turn advise the relevant staff within the Department of Planning.