Development Contributions

Council is responsible for the delivery of essential local infrastructure such as:

• parks
• playing fields
• local traffic facilities
• water management infrastructure and
• associated land

The NSW contributions system is established under Part 7 of the Environmental Planning and Assessment Act 1979 (Act).

Development generates the demand for new and upgraded facilities.

The Act outlines how development will bear a part of the cost of providing such infrastructure. This is often referred to as ‘user-pays’.

This ensures that rate payers and the community are not responsible for the funding burden of providing new development.

Part 7 of the Act is enacted under the preparation of Section 7.11 Contributions Plans and Section 7.12 Contributions Plans.

Under Section 7.11 of the Act, councils collect money (called contributions) from certain new developments. This helps pay for local infrastructure, like roads, parks, and community facilities.

This is called a Section 7.11 Contributions Plan.

Under the Act, councils may also accept the provision of a Material Public Benefit in full or partial satisfaction of a condition of consent requiring development contributions.

The most common form of a ‘Material Public Benefit’ is the construction of works that have been identified in the Schedule of Works of a Contributions Plan. This is referred to as Works-in-Kind.

In The Hills, these plans usually apply to new homes or new non-residential buildings (like shops or offices) built within certain areas.

Each Contributions Plan explains:

• What types of development must pay contributions
• How the amount to be paid is worked out

The cost of new infrastructure is shared between:

• the expected number of new residents (based on how many homes or bedrooms are being built) and/or
• expected amount of non-residential floor area (based on the size of non-residential buildings)

Here’s how contributions are calculated:

• For residential buildings, the amount is based on how many homes or lots are being built. For multi-unit developments, the number of bedrooms is used instead.
• For non-residential buildings (like shops, offices, or factories), the amount is based on how much extra floor space is being added. The exact definitions of "Floor Space" or "Gross Floor Area" are explained in the Contributions Plan.

To find out the current rates for contributions, you can check the Contributions Rates Schedule available on this page.

Under Section 7.12 of the Act, councils can collect a development contribution from certain types of building projects. These contributions help pay for local infrastructure, like roads, parks, and public facilities.

Unlike other types of contributions, Section 7.12 does not require a direct link between the development and the specific infrastructure being funded.

Section 7.12 contributions are based on a percentage of the estimated cost of the development. This percentage is determined under the Regulation and is set out in the Council’s Contributions Plans and listed in the Contributions Rates Schedule.

To calculate the estimated cost, applicants must submit a Cost Summary Report. This report must be prepared by a qualified person, such as:

• A licensed builder
• A registered architect
• An accredited building designer
• A registered quantity surveyor
• Or someone with the right qualifications and experience in development costing

For developments that cost more than $3 million, a Quantity Surveyor Report must be prepared by a registered member of the Australian Institute of Quantity Surveyors.

Some types of development may not have to pay a contribution.

These include:

• Projects listed as exempt in the Council’s Contributions Plans
• Developments excluded under a Ministerial Direction (Section 7.17 of the Act)
• Certain works listed in Section 208 of the Regulation

Exemptions will be confirmed by councils or certifiers as part of the assessment of development applications or complying development certificates.

The Council currently has 11 2 Section 7.11 Plans and Section 7.12 Plans.

The land to which each plan applies is shown on a map in the Contributions Plan.

The type of development that is covered by either a Section 7.11 or Section 7.12 Plan is listed in each specific plan.

The Hills Section 7.12 Contributions Plan applies across the entire Shire. This means that if your development isn’t listed in a Section 7.11 Plan, it may still be charged a levy under the Shire-wide Section 7.12 Plan.

However, Section 7.12 contributions do not apply to the construction of a new single home if that land was already charged a Section 7.11 levy during subdivision.

Information on Section 7.11 and 7.12 Development Contributions(PDF, 409KB) 

Development contributions must be paid according to the rules in the relevant Contributions Plan.

• For subdivisions, payments are usually made before a Subdivision Certificate is issued
• For building works, payments are usually made before a Construction Certificate or Subdivision Works Certificate is issued (or as stated in the approval conditions)
• For complying developments, contributions must be paid before starting work

The amount you pay may increase over time based on the Plan’s indexing rules.

To confirm the exact amount before making a payment, contact the Council’s Contributions Officer:

• Phone 02 9843 0555 or
• email council@thehills.nsw.gov.au

Please note, Council no longer accepts cash or cheque payments for development contributions.

For more details and payment options, please contact the Council.

Complying Development Certificates (CDCs)

Under Section 7.21 of the Act and Section 156 of the Regulation, certifiers must include a condition requiring payment of a Section 7.11 or Section 7.12 contribution levy, in accordance with the relevant Contributions Plan.

Before issuing a CDC, certifiers are encouraged to contact the Council’s Contributions Officer to check if any contributions are payable.

When asking for this information, please provide:

• The address of the development
• A description of the development
• The proposed plans
• The estimated cost of the development (a Cost Summary Report*)

*CDC applications and requests for fee estimates should be accompanied by a Cost Summary Report. You can download a template for this report on this page.

Certifiers must make sure the contribution levy is paid before any work begins, according to the Council’s Contributions Plans.

The Council can only verify and accept payment after the CDC has been registered on the NSW Planning Portal.

Under Section 141 of the Environmental Planning and Assessment Regulation 2021, registered certifiers must:

• Upload a copy of the CDC to the NSW Planning Portal
• Do this within 2 days of approving the CDC