When new development occurs, developers are required to contribute towards local infrastructure, such as roads, parks, drainage, and community facilities to support the extra demand created. Local infrastructure eligible for funding through contributions plans is listed in the plans work schedule. These contributions are established under the Environmental Planning and Assessment Act 1979, and usually take two forms:
- Section 7.11 contributions, based on new dwellings or new non-residential floor space
- Section 7.12 levies, charged as a percentage of the estimated development cost
Council currently administers 12 development contributions plans, comprising two plans that are in force and ten former plans that are partially active.
The two plans currently in force apply across the entire local government area. Both these plans are less than five years old and are presently under review.
The remaining 10 plans proposed for repeal are legacy plans, with some up to 25 years old. These plans comprise a combination of former City of Parramatta contributions plans and plans inherited from neighbouring councils following local government amalgamations in 2016.
New developments are not levied under the former plans, however contributions that were previously imposed under older development consents continue to be collected and held in the former plan reserves. Income from older development consents is steadily diminishing.
Council is required to review its contributions plans every 5 years. As part of this review Council is seeking to simplify the entire contributions framework to enable a simpler and more efficient way to fund infrastructure by removing outdated plans.
The former plans are generally collecting little income and many projects in the plans are outdated in cost and scope. Council needs to create clarity around the expenditure of funds held in reserve from those plans. Transferring funds into current like-for-like reserves will allow pooling of funds to potentially bring forward priority projects.
Yes. Contributions levied under former plans will still need to be paid. These funds will be transferred to the current plans and managed within the corresponding like‑for‑like reserves identified in the Attachments forming part of this exhibition.
Works items from the former contribution plans which are still fit for purpose and a priority will be retained in the revised contributions plans and rescoped and costed. Works items that are no longer relevant and/or low priority will be removed.
Works items in the revised plans will be assessed on the basis of whether they are fit for purpose, serve community need and demand for a growing population, are cost effective and able to be achieved within a reasonable time.
The current CBD and Outside CBD contributions plans will run from 2027-2047, ie 20 years. Key priorities will be set for the 1-5 year period, lesser priorities for the 5-10 year period, and longer-term priorities for the 10-20 year period. Priorities need to consider the anticipated annual income coming into the plan reserves, so the works schedule is realistic. The plans should be comprehensively reviewed every 5 years.
Refer to the Resources links on this page.
This repeal of former plans is Stage 1 of Council’s review of its contributions plans. Concurrently, Council is assessing all the works items from every plan to decide which items should be carried forward into revised plans. A draft of the revised plans, including the proposed works schedules, will be publicly exhibited later in 2026 enabling further comment.
If you have questions or require any further information in relation to this exhibition, please contact us using the details below.
contributions@cityofparramatta.nsw.gov.au
Phone
02 9806 5050
Post
Attention: Martin Smith - Infrastructure Planning
Subject: Repeal of Former Development Contributions Plans
City of Parramatta Council
PO BOX 32
Parramatta NSW 2124
Please ensure that you clearly state your full name, contact details and address.
