Council policies and procedures for planning agreements

Councils are strongly encouraged to publish a planning agreements policy and associated procedures concerning the use of planning agreements.

The planning agreement policy should address how planning agreements will work in the council’s specific circumstances. This module provides advice on what the policy should include.

Legislative requirements

The legislation does not mandate that councils prepare policies and procedures relating to planning agreements. However, councils are strongly encouraged to prepare them to ensure planning agreements are used in a transparent and certain manner. This is important for the public interest and the integrity of the planning system, and helps to promote efficiency in the use of planning agreements.

Policy positions

Councils should develop a policy detailing how they will use planning agreements

Planning agreements should be used within a robust policy framework to ensure that all parties have certainty in their application and to prevent the perception that planning decisions are for sale.

Councils should develop a policy detailing how they will use planning agreements. This protects against the misuse of agreements in planning decisions and processes, which may seriously undermine good planning outcomes and public confidence in the planning system. Councils should ensure that planning decisions are made openly, honestly and freely in each specific case, and fairly and consistently across the board.

The planning agreement policy does not need to reproduce the requirements set out in the legislation or the contents of this practice note. It should address how planning agreements will work in the council’s specific circumstances.

Planning agreement policies should address certain important considerations

Councils should address the below considerations in their planning agreement policies.

Considerations to address in planning agreement policy
Considerations	Detail
Principles of planning agreements	Demonstrate how the council will consider the principles of planning agreement, including any additional principles the council adopts.
Objectives	Outline the objectives council wishes to achieve by using planning agreements.
Acceptability test	Demonstrate how council will determine the acceptability of a planning agreement, including addressing the acceptability test and any council specific additions to it.
Strategic planning considerations	Consider and address: how councils use of planning agreements aligns with any relevant district and regional strategic plans and policies how planning agreements fit within the context of the council’s broader strategic planning and land use planning policies, goals, strategies and identified infrastructure needs what land use planning and development objectives will be promoted or addressed by the use of planning agreements
Governance and probity	Detail the governance and probity measures council will implement to protect the public interest and prevent misuse of planning agreements, including: how the regulatory independence of the council will be guaranteed how the council will extend fairness to all parties affected by a planning agreement.
Public participation	Detail councils preferred use of planning agreements including: the circumstances in which the council would consider using a planning agreement the role served by planning agreements in the infrastructure funding system of the council the types of development to which planning agreements will ordinarily apply, and how their use may be differentiated between different types of development whether any thresholds apply to the use of planning agreements
Procedures for negotiation	Outline standard negotiation procedures that detail: the matters ordinarily covered by a planning agreement council’s standard approach for negotiating and entering into a planning agreement council’s preference for receiving an offer and any supporting evidence required by council to demonstrate how the offer has been determined the kinds of public benefits council would consider and council’s method for determining the value of public benefits how council will monitor the progress of negotiations and resolve delayed negotiations, including council’s preference for mediation if negotiations stall but parties still wish to continue pursuing the agreement council’s preference on the timing of developer obligations under a planning agreement and how it will consider discharging obligations council’s preference on which party drafts the agreement and drafts the explanatory note
Administering planning agreements	Outline standard administration processes including how council will: approve a planning agreement, such as via a council meeting or delegation monitor planning agreement performance enforce a planning agreement through security. address dispute resolution address payment of costs relating to planning agreement preparation and administration
Templates	Include a standard planning agreement template or standard clauses, and an explanatory note template.

Practice notes home page

Updates

Legislative requirements

Policy positions

Councils should develop a policy detailing how they will use planning agreements

Planning agreement policies should address certain important considerations

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