Developer Contributions are upfront payments levied by Shoalhaven Water to recover part of the water and sewer costs relating to existing and planned infrastructure such as treatment plants, pumping stations, reservoirs, and trunk mains due to the loading/demands that your proposed development will place on our infrastructure.
Under the provisions of Section 64 of the Local Government Act 1993 and Sections 305 to 307 of the Water Management Act 2000, developer charges are applicable for water and sewer. The Act outlines that developer contributions may be subject to:
- The erection, enlargement or extension of a building or the placing or relocating of a building on land.
- The subdivision of land.
- The change of use of land or of any building situated on the land.
The unit rate for the applicable Section 64 charge is contained in Council's annual fees and charges.
The amount of the contributions levied will depend upon the loading that the proposed development will have on the water supply and/or sewerage systems. The greater the loading on the systems the greater the developer charges amount payable.
If your development is greater than a standard development, such as a multi-unit development, then these charges can amount to many tens of thousands of dollars and as such you will need to make appropriate allowances in your feasibility assessment.
To review an example of how we calculate developer contributions, follow this link to our water and sewerage headworks charges (s64 Contributions) – Assistance for developments.
Charge rates increase annually and as such the applicant/developer must be mindful that the amount payable may increase where payment is made in a future financial year. Developer charges are based on an 'Equivalent Tenement' (ET) loading based on the water supply and/or sewerage systems.
Subject to the type of development proposed the following methods are used to calculate the number of ET’s:
- Number of lots (eg, residential subdivisions)
- Number of bedrooms (eg, medium density and dual occupancy developments)
- Number of sites and cabins (eg, caravan park, manufactured housing estate, tourist developments)
- Floor area (eg, commercial and industrial developments)
- Number of persons (eg, church, entertainment centre, child minding facility)
- Number of units (eg, washing machines for a laundromat or beds for a hospital)
- Water use (eg, where the development is a high-water user)
- A combination of the above for a diverse/complex development
Please note: The ET factor for water supply may be different to the ET factor for sewerage.
Developer contribution payment requirements vary depending on the type of development but generally must be paid prior to the issue of a construction certificate.
Where the development does not require a construction certificate, for example a caravan park expansion (such as camp site, caravan/mobile home sites), then the imposed developer contributions must be paid as specified in the water development notice.
If the development is a subdivision, then the imposed developer contributions must be paid prior to the release of the plan of subdivision.
There may also be cases where the developer contributions must be paid at the time of granting the development consent. Your water development notice will indicate when payment is required and the amount payable for the relevant financial year.
What happens if developer contributions are not paid?
- A certificate of compliance will not be issued, and/or
- Legal action may be pursued for payment of the outstanding developer contributions.
Please note: Applications should only be made for a development that has a water development notice.
To apply for an invoice for current financial year developer contribution charges, please visit our page on applying for Section 64 developer contribution charges.