Council Report - Section 94 / 7.11 Contribution

S94 Contributions: The Basics of a Section 94 Council Report

If you’re a developer about to start your next project, chances are you’ve come across the term “Section 94 Council Report” and wondered what it’s all about? This is an important document in the development sector and understanding it can make all the difference in your project’s success.

In essence, a Section 94 Cost Summary Report – or Section 7.11 Report for NSW residents – is a document that provides a detailed estimate of your development project costs. A development contributions plan overlay is often incorporated as a schedule to Section 94 in a planning scheme, and it outlines the requirements for the preparation and approval of a DCP as set out by the Planning and Environment Act and the Ministerial direction.

What is the Purpose of this Report?

This report calculates the contribution levy you’ll need to pay the council – a percentage of your total development costs under Section 94 of the Environmental Planning and Assessment Act 1979.

The levy includes development contributions for local infrastructure funding, such as local roads, stormwater and drainage, shared pathways, parks, play spaces, recreational areas, environmental land, and community facilities.

The report includes a breakdown of all the costs associated with your proposed construction project, such as:

• Site acquisition and prep costs
• Construction expenses
• Professional fees
• Contingency funds
• Any other development-related costs

The aim is to ensure that you’re paying a fair share of the public amenities and services that your new development in the local area will impact. The development affects local infrastructure, including roads, parks, and other public amenities.

When Do You Receive A Local Council Report?

You’ll need to submit a Section 94 Report when you lodge a Development Application (DA) or Complying Development Certificate (CDC). Your council or planning authority will usually determine if you need one based on:

• The size and type of your development
• How it will impact local amenities and services determined by local councils
• The specific policies and regulations in your area

Development contributions plans are incorporated into a planning scheme as a schedule prepared by a planning authority. They set out requirements for preparation, approval, and collection, including monetary payments, land transfer, works in kind, and provision of public amenities or services.

Even if your development is low-cost, it can significantly impact local amenities and services. So, it is always best to check with your local council or planning authority to understand your Section 94 obligations.

Local infrastructure contributions are monetary payments required by local councils to fund infrastructure needed to support new developments.

Meeting the Development Cost Requirements for a Construction Project

When your development is over $100,000, the Section 94 Report, including the estimated cost, must be completed by a council-approved qualified professional, such as a builder or architect. If your development is over $500,000, the council may request an independent Cost Summary Report certified by a registered quantity surveyor.

The proposed cost of the development is a key factor in determining the levy paid to the government.

That’s where Duo QS comes in. Our quantity surveyors can prepare a Section 94 report that meets your council’s format and requirements. You can avoid overpaying on contribution fees or underpaying the levy with an accurate report.

Creating a Section 94 Contributions Report

Here’s what goes into a Section 94 Council Report:

1. Review plans: We’ll review the plans you’re submitting with your DA or CDC application to get a clear understanding of your proposed development.
2. Measure gross floor areas: We measure the gross floor areas according to the AIQS Cost Management Manual Volume 1, Appendix A2’s Method of Measurement of Building Areas. This ensures your cost estimate is based on accurate, standardised measurements.
3. Cost estimate: We prepare a cost estimate (including GST) in accordance with cost management manuals and council regulations, considering the development cost for calculating the levy paid to the government.
4. Complete and sign contribution forms: We complete and sign the development contribution forms required by your council.
5. Section 94 Report: We prepare the Section 94 Report in the format and requirements of your council.

The development contributions plan outlines the types of contributions collected for infrastructure and facilities.

Frequently Asked Questions

What is a Section 94 Contributions Plan?

A Section 94 Contributions Plan allows local councils to impose conditions on development consents that require monetary contributions or land dedication for public amenities and services. It provides an administrative process for funding and delivering specific public facilities to meet the needs generated by new development.

How are Section 94 contributions calculated?

Section 94 contributions must be related to the nexus (the link between development and demand created) and apportionment (the share borne by future development). The contribution is based on the proposed cost of development.

What can Section 94 contributions be used for?

Section 94 contributions can fund the capital costs of public facilities that a council must provide and that are generated by new development. These include local roads, stormwater, parks, community facilities, and more.

Are there limits on Section 94 contributions?

The previous limit was $30,000 for greenfield areas and $20,000 for infill areas in NSW. However, a 2017 amendment increased the limit for some developments. The amounts vary by council area.

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Why Choose Duo QS Construction Estimators?

Duo QS’s experts stand out as a top choice for cost estimating and quantity surveying due to our blend of expertise, efficiency, and customer service. As registered and certified members of the Australian Institute of Quantity Surveyors (AIQS), we bring a high level of professional standards and broad experience to every project.

We are committed to delivering accurate Section 94 Cost Summary Reports swiftly, typically within two business days, which helps keep your project on track. And our precision in cost estimation can lead to significant cost savings by ensuring you pay only what’s necessary in Section 94a contribution fees to the council.

Moreover, our cost estimator team is adept at preparing reports in accordance with specific council formats and requirements, ensuring smooth acceptance of your report. We offer these high-quality services at competitive fees, providing excellent value for money.

Above all, Duo QS prioritises customer service, striving to make the process of obtaining a Section 94 report as stress-free as possible for our clients.