Requesting a higher section 7.12 rate
Local infrastructure contributions practice notes
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Councils can only charge section 7.12 levies up to the maximum percentage rate specified in the EP&A Regulation. However, councils can request a higher rate if this rate is justified. This module outlines the process.
Legislative requirements
The maximum percentages that councils can levy under section 7.12 of the EP&A Act are set out in the EP&A Regulation.
- Section 209(2) of the EP&A Regulation sets a maximum rate of 1%, although councils may impose a lower rate.
- Section 209(1) of the EP&A Regulation lists areas that are subject to higher maximum percentage rates.
Policy positions
Councils can request a higher maximum rate
Councils can make a request to the Minister for Planning and Public Spaces to increase the maximum section 7.12 percentage levy that they can charge. Any increase in the maximum percentage requires an amendment to the EP&A Regulation and is a matter for the Minister to determine if it should be increased.
Councils considering making a request should review the criteria set out below to determine if they can justify the proposed increase. Councils should contact the Department early in this process and before they submit a request, to discuss how they will meet the criteria.
The Department will assess the application and make recommendations to the Minister. Where a request is supported by the Minister, the Department will amend the EP&A Regulation.
In assessing the request, the Department will consider individual geographical, socioeconomic and development contexts. All requests for higher maximum rates will be assessed on their merits, including any requests to deviate from the outlined criteria or percentages.
Criteria for requesting a higher maximum levy
The detail and amount of evidence required should be proportionate to the value of the contributions plan. Councils should consider and address the relevant criteria when making an application for a maximum levy between 1% to 2%. There are also additional criteria for a maximum levy between 2% to 3%.
Councils can include any additional information, data, reports or studies to support their application.
Criteria for Greater Sydney councils – maximum levy between 1 – 2%
Criteria for Greater Sydney councils – maximum levy between 1 – 2%
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Criteria for Greater Sydney councils – maximum levy between 1 – 2% |
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a |
Strategic areas are identified in a regional plan, district plan or respective local strategic planning statement, as a strategic centre, growth area, local centre or economic corridor. |
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b |
Local planning controls reflect or are being amended to reflect relevant strategic direction and targets for the centre or defined area. |
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c |
A requirement for a review every 5 years from the date the new contributions plan comes into force is written into the contributions plan. |
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d |
Ongoing consultation with the Department regarding changes to works schedules will be undertaken, otherwise the higher percentage levy will no longer apply. |
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e |
The contributions plan should focus on delivering quality place-based community and green infrastructure and public space improvements that enhance the amenity of the centre. |
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The centre has been identified by the relevant strategic plan to accommodate significant employment growth. For example, facilitating an increase of at least 25% more employment opportunities than currently available in the centre. |
Criteria for all other councils – maximum levy between 1 – 2%
Criteria for all other councils – maximum levy between 1 – 2%
Councils must address the criteria below.
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Criteria for all other councils – maximum levy between 1 – 2% |
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a |
Strategic areas are identified in a regional plan, district plan or respective local strategic planning statement, as a strategic centre, growth area, local centre or economic corridor. |
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b |
Local planning controls reflect or are being amended to reflect relevant strategic direction and targets for the centre or defined area. |
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c |
A requirement for a review every 5 years from the date the new contributions plan comes into force is written into the contributions plan. |
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d |
Ongoing consultation with the department regarding changes to works schedules will be undertaken, otherwise the higher percentage levy will no longer apply. |
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e |
Contributions should focus on delivering high cost infrastructure items identified in regional plans and strategic plans, such as roads. |
Additional criteria for a maximum levy of more than 2%
Additional criteria for a maximum levy of more than 2%
Councils should address the criteria for a levy between 1 – 2%, as well as the additional criteria below.
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Additional criteria for a maximum levy of more than 2% |
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a |
The works schedule has been prepared in consultation with the Department. This gives the department the opportunity to liaise and coordinate with infrastructure agencies to identify strategic, place appropriate infrastructure and ensure infrastructure needs are met in the most efficient manner. |
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b |
Financial modelling demonstrates that a 2% levy is insufficient to deliver the identified infrastructure in the proposed time frame. |
Requests for a maximum levy of more than 3%
Requests for a maximum levy of more than 3%
Councils must address all the criteria above if seeking a section 7.12 levy increase of more than 3%. Councils should contact the department before making an application to ensure that the most appropriate information is included in their application.
Procedure
Process for applying for a higher section 7.12 levy
Consider whether a section 7.12 plan is the appropriate mechanism
Consider if a higher maximum percentage levy is needed to deliver infrastructure in the plan
Review the criteria to assess whether a request for a higher maximum rate is likely to be successful
Contact the department to discuss the potential request
Download and consider the detailed process below, then make a formal request at the appropriate time
Detailed process for requesting a higher 7.12 levy
How to make a formal request
Councils must make a formal request formal request to the Minister for Planning and include the below information, as well as any additional information as required by the department.
Council should submit the formal request package to: [email protected]
The package should include:
- a cover letter addressed to the minister requesting an increase to the maximum percentage
- council’s resolution to make the request
- the contributions plan
- responses to the criteria
- summary of exhibition submissions