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Ministerial directions for local contributions

Local infrastructure contributions practice notes

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The Minister for Planning and Public Spaces has the power to give direction to councils and other consent authorities which are called Ministerial directions. This module outlines the Minister’s direction making powers for local contributions and where the directions applying to local infrastructure contributions are found.

 

Legislative requirements


Ministerial direction making powers for local infrastructure contributions

Councils must adhere to any direction made by the Minister. While the Minister has the power to make directions under Part 7 of the EP&A Act, there is no obligation for these powers to be used. The Minister may give directions generally or in relation to a particular case. 

Ministerial powers
Minister powers in the EP&A Act Section

Power to direct a planning authority to follow particular procedures and standard requirements when negotiating planning agreements.

7.9 EP&A Act

Power to direct a consent authority to take certain actions in relation to charging contributions under section 7.11 and section 7.12.  

7.17 EP&A Act

Power to direct a council to approve, amend or repeal a contributions plan or to do so on their behalf in certain circumstances.  

7.19 EP&A Act

Current Ministerial directions 

Ministerial directions for local infrastructure contributions are currently published in the NSW Government Gazette and within this module. 

The tables below outline the current Ministerial directions. However, councils should ensure they have the most up to date version and are aware of any new directions, which may not be immediately reflected in this module. 


 

Directions for local infrastructure contributions under section 7.17

Active directions Date issued Description
Environmental Planning and Assessment (Levies – City of Sydney) Direction 2021 26 November 2021 To stage the introduction of the maximum 3% Section 7.12 levy under the Central Sydney Development Contributions Plan. The Ministerial Direction manages the transitional arrangements between the maximum 2% and 3% levy rates prior to 1 July 2022 when the maximum 3% levy will apply.
Environmental Planning and Assessment (Local Infrastructure Contributions – Information) Direction 2020 18 May 2020 Requests certain councils to provide information relating to the delivery of public amenities and public services specified in local contributions plans, including the staging of works.
Environmental Planning and Assessment (Local Infrastructure Contributions – Pooling of Contributions) Direction 2020 18 May 2020 Encourages the consolidation (pooling) of infrastructure contributions to accelerate the delivery of local infrastructure.
Environmental Planning and Assessment (Local Infrastructure Levies) Direction 2015 14 April 2016 Prohibits s94A (now section 7.12) levies where a s94 (now section 7.11) contribution is required.
Environmental Planning and Assessment (Local Infrastructure Contributions – Port of Newcastle) Direction 2014 Issued to Newcastle Council 10 October 2014 Exempts land within the lease areas of the Port of Newcastle from contributions payments (Newcastle LGA).
Environmental Planning and Assessment (Local Infrastructure Contributions – Port Botany and Port Kembla) Direction 2013 6 December 2013 Exempts land within the lease areas of Port Botany and Port Kembla from contributions payments (Bayside, Randwick and Wollongong Local Government Areas (LGAs).
Environmental Planning and Assessment (Local Infrastructure Contributions – Hawkesbury City Council) Direction 2013 24 September 2013 Excludes certain items from contribution payments in the Pitt Town Residential Precinct (Hawkesbury LGA).
Environmental Planning and Assessment Act 1979 Revocation of Direction in force under section 94E and Direction under section 94E 14 September 2007 Exempts payment of a contribution for development carried out under the Seniors Living SEPP where undertaken by a social housing provider.

Directions setting the maximum monetary contribution payable under section 7.11 plans

These ministerial directions relate to the rate thresholds set for section 7.11 contributions and the subsequent review by IPART for plans that propose rates over these thresholds. Guidance on this process is available in the IPART review of section 7.11 plans module. 

The initial 2012 direction has been amended as shown below. A consolidated version of the direction is available for information only .

Active directions Date issued Description
Environmental Planning and Assessment (Local Infrastructure Contributions) Amendment Direction 2021 7 December 2021 This amendment permits infrastructure contributions up to the $30,000 threshold for urban release areas in Shoalhaven. 
Environmental Planning and Assessment (Local Infrastructure Contributions) Further Amendment Direction 2020 18 December 2020 Further amendments including specific provisions for Cessnock, Lake Macquarie and Newcastle councils.
Environmental Planning and Assessment (Local Infrastructure Contributions) Amendment Direction 2020 18 June 2020 This amendment makes specific provision for Blacktown and The Hills local government areas for the 6 month period starting on 1 July 2020, to cap local infrastructure contributions at $50,000 per dwelling or per residential lot. 
Environmental Planning and Assessment (Local Infrastructure Contributions) Amendment Direction 2019 20 December 2019 Further amendments including clarifying the role of IPART reviews as well as specific provisions for Shellharbour council
Environmental Planning and Assessment (Local Infrastructure Contributions) Further Amendment Direction 2018 18 December 2018 Further amendments including clarifying who the direction applies to as well as specific provisions for Lake Macquarie, Port Stephens, Queanbeyan-Palerang and Wollondilly councils. 
Environmental Planning and Assessment (Local Infrastructure Contributions) Amendment Direction 2018 23 February 2018 This amendment makes specific provisions for listed development areas, as well as some adjusted thresholds, in contributions plans for Blacktown and Lake Macquarie councils. 
Environmental Planning and Assessment (Local Infrastructure Contributions) Amendment Direction 2017 17 July 2017 Amendments to the Environmental Planning and Assessment (Local Infrastructure Contributions) Direction 2012, including temporary threshold adjustments for some listed development areas.
Environmental Planning and Assessment (Local Infrastructure Contributions) Amendment Direction 2016 14 September 2016 This amendment makes specific provisions for listed development areas in contributions plans for Maitland, Queanbeyan and The Hills councils. 
Environmental Planning and Assessment (Local Infrastructure Contributions) Amendment Direction 2013 19 June 2013 This amendment makes specific provisions for listed development areas in contributions plans for Ballina, Lake Macquarie, Maitland and Wyong councils. 
Environmental Planning and Assessment (Local Infrastructure Contributions) Direction 2012 21 August 2012 Sets a maximum amount of monetary contributions under s94 (now section 7.11). 

Directions for planning agreements under section 7.9

Active directions Date issued Description
Environmental Planning and Assessment (Planning Agreements) Direction 2019 28 February 2019 Requires all councils to consider a series of matters when negotiating a planning agreement with a developer for the purposes of affordable housing in connection with a development.

Revoked or superseded directions

Revoked or superseded directions Date issued Description Revoked by
Environmental Planning and Assessment (Local Infrastructure Contributions – Timing of Payments) Direction 2020 25 June 2020 To temporarily defer the payment of local infrastructure contributions and levies until the issuing of an occupation certificate for certain types of development. The direction expired on the last day of the prescribed period within the meaning of section 10.17 of the EP&A Act. The prescribed period concluded on 31 March 2022.
Environmental Planning and Assessment Act 1979 Direction Under section 94E (section 7.17 of the current Act) 9 September 2009 Exemption from payment of a contribution for development funded under Building the Education Revolution (BER) program. Environmental Planning and Assessment (Local Infrastructure Levies) Direction 2015
Environmental Planning and Assessment Act 1979 Direction Under section 94E (section 7.17 of the current Act) 10 November 2006 Development for which a s94A contribution cannot be applied and maximum percentage that can be applied. Environmental Planning and Assessment (Local Infrastructure Levies) Direction 2015
Environmental Planning and Assessment (Local Infrastructure Contributions – Warriewood Valley) Direction 2011 13 May 2011 Capping of contributions in the Warriewood Valley (Pittwater Council). Environmental Planning and Assessment (Local Infrastructure Contributions – Warriewood Valley) Revocation Direction 2015