What are section 7.11 and section 7.12 development contributions plans and how do they differ?

    The Inner West Council predominantly obtains funds towards the provision of public amenities and services through two key sections of the Environmental Planning and Assessment Act - “the Act” (and its associated Regulations): 

    • section 7.11 plans have area specific/tailored contribution amounts (formerly known as section 94) 

    • section 7.12 plans have fixed flat rate percentage levy amounts set by the NSW State Government via the Regulations (formerly known as section 94A) 

      Given their standardised format, section 7.12 plans are not required to establish, the connection (nexus) between the development paying the levy and the object of the expenditure of the levy.  On the other hand, section 7.11 plans do need to establish this connection, which typically requires costly detailed research.  

      Both section 7.11 and 7.12 plans collect funds to service any expected future population and employment increase in the Local Government Area (LGA).  

    Does every council have section 7.11 and section 7.12 plans?

    To provide for appropriate levels of amenities and services in their areas in keeping with their expected population increases, most councils have both section 7.11 and section 7.12 plans in place.  

    Why didn’t former Leichhardt Council have a section 7.12 plan in place before and why is it important to have one now?

    The former Leichhardt area is the only part of the Inner West that currently does not have a section 7.12 plan in place because its legacy contributions plans predated the widespread use of this section of the Act.  

    This is a harmonisation project which ensures that, section 7.12 levies can be applied uniformly and equitably across the Inner West LGA whilst Council staff prepare a single Inner West Contributions Plan.  It also ensures developments across the Inner West are contributing equally towards the provision of new or augmented public amenities and services. 

    How does the draft section 7.12 plan affect me?

    A section 7.12 levy is applicable to all development (costing greater than $100,000) where section 7.11 levies are currently not payable, unless the development is exempted from paying the levy under the terms of the draft plan.

    The harmonised section 7.12 levy would be applied as follows: 

    What suburbs are in the former Leichhardt area?

    Suburbs which this Plan applies to include:

    • Annandale
    • Balmain
    • Balmain East
    • Birchgrove
    • Camperdown (north of Parramatta Road)
    • Leichhardt
    • Lilyfield
    • Rozelle