Section 7.11 of the Environmental Planning and Assessment Act 1979 allows councils to charge developers a contribution (either monetary, land or works in kind) for the provision of local infrastructure where the development creates the need for that infrastructure. Contributions plans (CPs) are prepared by the council and set out the local infrastructure required to meet the demand from new development.
Under the Ministerial Directions, if the contributions plan proposes to charge contributions above a threshold of $30,000 per lot or dwelling in identified greenfield areas and $20,000 per dwelling in other areas, the CP must be submitted to IPART for review. IPART reviews these plans in accordance with its Terms of Reference, the Ministerial Directions, and the 2019 Practice Note, which is to be read in conjunction with the 2005 Practice Notes.
Within this framework, IPART has flexibility in determining how to approach the assessment of CPs. Because each CP and council is unique, we need to tailor our assessments to individual requirements and use our judgement to make assessments of each of the criteria.
Our Information Paper sets out IPART’s approach to assessing CPs including the information we need councils to provide when applying for an IPART review. We encourage councils to read our completed assessments of CPs for a more detailed understanding of our assessment approach and considerations that arise through our reviews.
Our updated local infrastructure benchmark costs are now available for councils to refer to when developing costings in CPs. Benchmarks may be helpful for councils in the early stages of planning, when detailed designs and costings are not yet available. Councils are not required to use our benchmarks and we encourage councils to use actual costs, quotes, valuations and quantity surveyor estimates wherever possible. We are trialling an interactive benchmark tool to make it easier for councils to use our benchmarks. The tool will be available on this page when it is completed.
We encourage councils preparing contributions plans for IPART assessment to contact us to discuss the plan, timeframes, our review process and any questions you have.
Contact
Bronwen Sandland - Direct: 02 9113 7710; Main: 02 9290 8400;
E: bronwen.sandland@ipart.nsw.gov.au
When you are ready to lodge your application, please call (02) 9113 7730 or email bronwen.sandland@ipart.nsw.gov.au. For more information about submitting an application please visit Lodge a contributions plan for assessment | IPART.
Further information
Guidance for councils
- Information Paper - IPART assessment of local infrastructure contributions plans
- Information Paper - Guidance for contributions plans: Local Infrastructure Benchmark Costs
- Fact Sheet - Local Government discount rate
- Technical Paper - Modelling local infrastructure contributions in a net present value framework - August 2024