FAQs
What are Section 7.11 Plans, how do they work and what are some of the general principles of Section 7.11 Plans?
Section 7.11 Plans are Developer Contributions Plans that enable Council to impose conditions of consent requiring monetary contributions from development for the provision of public infrastructure that is required to meet the population demands associated with that particular development. Sometimes arrangements are more appropriate that require works-in-kind and/or land dedications equal in value to the monetary contributions. This is acceptable so long as the alternative arrangements provide the public benefits that are the subject of the original S.7.11 levy.
Section 7.11 Plans ensure that adequate public infrastructure is provided to meet the demands generated by new development and that the existing community is not burdened by the provision of public infrastructure required as a result of future development.
Development that caters for an increase in the future residential and/or business population creates a demand for new, enhanced or augmented public infrastructure and therefore must make reasonable contributions toward the cost of the infrastructure identified in the Section 7.11 Plan.
How are works selected for a Works Schedule that accompanies a Section 7.11 Plan?
The items included in the Works Schedule are those that have, over a period of time, been identified as important public infrastructure required to support a growing population. In many cases, the items have been the subject of a body of work (for example, an adopted Plan, a Masterplan or a Strategy) that has identified the need for publicly owned infrastructure.
The Revised 2023 Works Schedule is largely the same as the adopted 2013 Works Schedule. The assumption is that the works identified in 2013 still have relevance in 2023. A small number of new infrastructure works have been added such as projects that are underpinned by the adopted Bike Plan, the adopted Pedestrian Access Mobility Plan or new priorities such as a Multifunction Performance Theatre Space.
The works need to be related to population growth. The term ‘nexus’ is a term often referred to in Section 7.11 Plans. Nexus is a term that describes the connection between the proposed development (ie supply) and the increased need for the public infrastructure (ie demand).
Why has Council not adopted a Section 7.11 Plan for the LGA as it has for St Leonards South precinct?
The current Section 94 Plan pre-dates the introduction of Section 7.11 Plans which eventuated from historical amendments to the EP&A Act. These historical amendments included a renumbering of all sections within the Act, including the introduction of Section 7.11, replacing the old Section 94 of the EP&A Act.
It is important to note that Council is not amending the Section 7.11 Plan itself, it is only amending the Works Schedule associated with the Plan to reflect indexed figures as permitted within the Plan.
The St Leonards South Section 7.11 Plan was introduced after the renumbering of all sections of the EP&A Act occurred. The St Leonards South Section 7.11 Plan supports the unique development occurring at St Leonards South and underpins the St Leonards South LEP and DCP.
Where can I find the adopted 2013 Works Schedule?
The Adopted 2013 Works Schedule can be found HERE.
It is important to note that Council, in revising the estimates in the 2023 Works Schedule, did not substantially alter the works that were included in the 2013 Works Schedule so as to maintain the integrity of those works previously adopted by Council. Those works that have been completed in the 2013 Works Schedule have been removed from the proposed 2023 Works Schedule, while those not yet completed remain in the Schedule.
Where have the figures been derived from in the Works Schedule and what do these figures represent?
The Works Schedule includes an estimate of the contribution developers should pay towards public infrastructure required to service development and the increased population it brings.
The Works Schedule estimate is not necessarily the total cost of the works. The projects in the Works Schedule contain apportioned values that vary between current and future populations, depending on the nexus between the increased population and the public infrastructure required to service the increased population.
Are there limits to how much Council can levy on development? If so, what are they?
Yes, even though Council may have an adopted Plan that, in theory, can justify a contribution rate of greater than $20,000 per residential apartment, it is legislatively capped to only levy $20,000 per residential apartment. This limits the amount Council can levy and collect to fund projects in the Works Schedule.
Should Council have a justifiable reason for exceeding the $20,000 residential cap, it can apply to the Independent Pricing and Regulatory Tribunal (IPART) for a S.7.11 levy for necessary and expected public infrastructure that will cost above the $20,000 residential cap. This was the case for the St Leonards South development.