Development Contributions

Section 7.12 infrastructure contributions, also known as developer contributions, are charged by Council when new development occurs through a Development Application or Complying Development Certificate. These contributions help fund local infrastructure such as parks, community facilities, local roads, footpaths, stormwater drainage and traffic management.

The NSW State Government sets legislative framework under which councils collect and administer contributions. Waverley Council implements the system through its 7.12 Contributions Plan, which applies a levy to any development with a cost of works greater than $100,000.

In Waverley:

• For projects valued between $100,001 and $200,000, a levy of 0.5% of the total cost of works applies.
• For most projects valued over $200,000, a levy of 1% applies.

You can access Council’s Development Contributions Reports Register here.

For detailed information about how 7.12 contributions may apply to your development, refer to the Waverley Council Development Contributions Plan 2006.

Housing affordability in Waverley has been a growing issue for more than two decades. The supply of affordable and social housing in the area is limited, and demand continues to exceed availability across the Eastern Suburbs.

To increase the supply of affordable housing, Council collects contributions through the Waverley Affordable Housing Contribution Scheme 2023 (AHCS).

This scheme applies to:

• Residential flat buildings
• Multi-dwelling housing
• Independent living units
• Mixed-use developments (e.g. shop-top housing)

It does not apply to detached houses, dual occupancies, semi-detached or terrace housing developments, or non-residential development.

Contributions are levied in two ways:

• 1% levy of gross floor area (GFA); or
• For sites receiving up through a Planning Proposal, a contribution equal to a percentage of total GFA applies, with a target rate of 10%.

Applicants may meet their obligation by:

• Providing affordable housing dwellings to Council in line with the required GFA; or
• Paying a monetary contribution calculated using benchmark rates based on average per-square metre sales process in the relevant suburb.

Benchmark rates are updated regularly to reflect market conditions.

For further information, refer to the Waverley Council Affordable Housing Contribution Scheme 2023.

Note: The AHCS is separate from the NSW State Government in-fill affordable housing policy.

The Waverley Planning Agreement Policy 2014 provides Council’s framework for negotiating and managing Voluntary Planning Agreements (VPAs).

This policy is based on the principle of value sharing or value capture – developers who benefit from increased development rights should share part of the resulting uplift with the community.

The policy is typically applied to:

• Development Applications seeking variations to space ratio (Clause 4.4 of the Waverley Local Environmental Plan 2012).
• Proponent-initiated Planning Proposals seeking additional development potential.

Where a development can exceed established planning standards without unacceptable impacts, the value sharing mechanism allows the community to receive a net public benefit.

VPA contributions have been used to deliver:

• Streetscape improvements
• Park and public domain upgrades
• Sports facilities
• Other community infrastructure

Council will not enter a Planning Agreement unless the development is acceptable on planning grounds independent of the agreement. A development will not be approved simply because a VPA is offered.

Any development involving a VPA must exhibit a draft agreement for 28 days, outlining the proposed public benefit and whether the contribution is monetary or in-kind. Following exhibition, the agreement must be endorsed by Council.

All NSW councils are required to publish a public VPA register. Waverley Council’s register provides details of:

• The parties to each agreement
• The development to which it relates
• The contribution type and value
• The planning trigger (e.g. floor space exceedance or other uplift)

You can access Council’s Voluntary Planning Agreement Register here.

For more information, refer to the Waverley Planning Agreement Policy 2014.

The Housing and Productivity Contribution (HPC) applies to Development Applications and Complying Development Certificates for new residential, commercial and industrial development in:

• Greater Sydney
• Illawarra Shoalhaven
• Lower Hunter
• Central Coast

HPC contributions fund essential state infrastructure, such as:

• Schools
• Hospitals
• Major roads
• Public transport
• Regional open space

The HPC is separate from local contributions collected under Waverley Council’s 7.12 Contributions Plan.

Rates vary depending on development type. For details, refer to the NSW State Government’s website.