Council seeks approval from State Government to maintain developer contribution amounts

Wyong Shire Council has made an application to the Department of Planning to seek approval to go above the State Government’s proposed $20,000 developer contributions cap.

In December last year, the NSW Planning Minister, Kristina Kenneally informed Councils of her intention to cap developer contributions at $20,000 per lot/dwelling from 30 April 2009.

Developer contributions, also referred to as Section 94 contributions, are levied by Councils on new developments to assist with funding the key community infrastructure required for such developments.

New development within the existing suburbs of Woongarrah, Hamlyn Terrace and Wadalba and certain types of development within The Entrance are potentially affected by the State Government’s cap. If Council is unable to collect contributions above the $20,000 cap, this will create a shortfall in Council’s future funds of approximately $34.7 million when it comes to delivering much needed and essential community facilities.

“We need to collect contributions of at least $32,500 per lot/dwelling for projects earmarked in the Warnervale-Wadalba Urban Release Areas,” Council’s Acting Manager Future Planning, Paul Bowditch said. “Council has reviewed the contributions required to deliver projects in these growing areas and if we are unsuccessful in our application to collect contributions above $20,000, our community is looking at a total loss of approximately $34.7 million,” he said.

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