Timing of contributions payments
Local infrastructure contributions practice notes
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Councils can specify when in the development process they require contributions to be paid. This is often linked to the issuing of post consent certificates. For example, requiring payment be made before a subdivision, construction or occupation certificate is issued for the development.
Timing of payment has implications for the security requirements of the contributions. Councils should consider their policy on timing of payment at the same time as their policy on security.
This module provides guidance on when councils may require contributions payment.
Legislative requirements
There is no legislative requirement around when councils can require payments for development applications.
Contribution payments for complying development are required before the commencement of building work or subdivision work (section 156 and 158 EP&A Regulation).
Policy requirements
Contributions plans should include information on the timing of payments
Councils should include a section in the plan that details their policy on when monetary contributions should be paid.
The following are suggested timeframes for development application payments to ensure the timely provision of infrastructure and to provide a council with a degree of security regarding payment. Complying development has a mandatory payment timing.
|
Development |
Suggested payment timing |
|---|---|
|
Development applications involving building work |
Before the release of the construction certificate |
|
Development applications involving subdivision |
Before the release of the subdivision certificate
|
|
Development applications involving building work and subdivision |
Before the release of the construction or subdivision certificate, whichever occurs first |
|
Complying development certificates |
Monetary payments are required before the commencement of the building work or subdivision work. |
Conditions of consent must clearly specify the timing of payment
Conditions of consent should clearly specify when contributions payments will be required and how the contribution due will be indexed at time of payment. This ensures transparency and allows an applicant to plan for paying a contribution.
Councils can offer deferred payments at their discretion
A council may offer the option of deferred payment to what is required in the contributions plan, but this is at their discretion. If a council will offer deferred payments, this must be detailed in the relevant contributions plan to allow it to be conditioned. This can be done in the timing of payments section of the plan.
It should detail the council’s criteria for assessing deferred payment requests and the process for applying. Councils should consider the implications of deferred payment and require appropriate security. The security required for deferred payments should also be detailed in the contributions plans.