Making a section 7.11 contributions plan
Guidance on the steps involved in making and using a section 7.11 plan.
Print
Councils must have a contributions plan in place before that can charge section 7.11 contributions. A section 7.11 plan details what infrastructure will be provided, approximately how much it will cost and when and where it will be provided. This information is used to calculate a contribution rate and determine the contribution that will be paid by development.
This module lays out the steps involved in making and using a section 7.11 plan.
Councils can only impose a section 7.11 contribution if they have a contributions plan in place (section 7.13 EP&A Act).
Councils must provide certain information in a contributions plan. The information required is set out in the Environmental Planning and Assessment Regulation 2021 (EP&A Regulation) and shown below.
| Content of a section 7.11 plan | Legislation | Guidance |
|---|---|---|
|
The purpose of the plan |
212(1)(a) EP&A Regulation |
This module |
|
The land to which the plan applies |
212(1)(b) EP&A Regulation |
|
|
The development to which the plan applies and the relationship between the expected types of development and the demand for additional infrastructure |
212(1)(c) EP&A Regulation |
|
|
The contribution rates for different types of infrastructure and the formulas for determining contributions for different types of development |
212(1)(d) EP&A Regulation 212(1)(e) EP&A Regulation |
|
|
A map showing the specific public amenities and services proposed |
212(1)(f) EP&A Regulation |
|
|
A works schedule that contains an estimate of the costs and staging |
212(1)(g) EP&A Regulation |
|
|
The priorities for the expenditure of contributions through pooling and progressively applying funds |
212(1)(h) EP&A Regulation |
Borrowing, pooling contributions and forward funding infrastructure |
|
The timing of payment and the policy on considering deferred or periodic payments |
212(3) & (4) EP&A Regulation |
|
|
Information for registered certifiers about when a contribution is required for complying development certificates and how the amount can be obtained |
||
|
How the contribution rates in the plan will be indexed and how contribution amounts owing will be adjusted between granting consent and payment |
215(5)(b)(ii) EP&A Regulations |
Councils must provide the Minister with a copy their contributions plan as soon as practicable after it is approved (7.18 (4) EP&A Act).
Note: Councils can comply with this requirement by publishing all contributions plans on the NSW Planning Portal as per their reporting requirements.
A section 7.11 plan must have a section defining the purpose of the plan. Councils have discretion on the wording and purposes to include in this section. It should include the following purpose:
“The primary purpose of this plan is to authorise council or a registered private certifier to require a contribution be made towards the local infrastructure identified in the plan.”
A contributions plan should generally have a lifecycle of 10 to 15 years or equal to the forecast development duration.
When determining the appropriate life cycle, a council should consider the:
- life cycle of the development area and facilities being delivered
- long range planning that is required for any major infrastructure
- the growth assumptions including population projections, lot and dwelling projections and non-residential development projections that the plan has been informed by life cycle of any studies or strategies that underpin the plan.
Contributions plans should be regularly reviewed
The contributions plan should be regularly reviewed throughout its lifecycle to ensure it remains current. This includes regular review of the costs in the plan to ensure they remain accurate over the life of the plan, as well as more in depth review of the plan overall.
This should be done as part of the regular plan review process or when changes in costs are anticipated or incurred. Additionally, the contribution rates in the plan should be adjusted in line with the indexation method adopted in the plan.
The steps below show a simplified process for making and using a section 7.11 plan.
| Step | Process | Guidance |
|---|---|---|
|
1. |
Review funding options and decide whether to prepare a section 7.11 plan |
|
|
2. |
Decide where the plan will apply |
|
|
3. |
Determine the demand for infrastructure |
|
|
4. |
Identify what can be funded through contributions and what will need other funding sources |
What can be funded through section 7.11 and section 7.12 contributions |
|
5. |
Estimate the cost of infrastructure and prepare a work schedule and mapping Include information on delivery priorities |
|
|
6. |
Detail council’s policy on exemptions |
|
|
7. |
Calculate indicative contributions rates |
|
|
8. |
Detail how local works in kind agreements will be considered |
|
|
9. |
Detail the policy on seeking security |
|
|
10. |
Finalise draft plan preparation and complete council approval process for exhibition |
- |
|
11. |
Exhibit contributions plan, consider submissions and make amendments if necessary |
|
|
12. |
If the contribution rates are above the threshold, start the IPART review process |
|
|
13. |
Approve plan and upload to the NSW Planning Portal and council’s website |
|
|
14. |
Continue to report on the plan as it progresses |
|
|
15. |
Regularly review the plan to ensure it remains current |