What do the recent State Government changes to infrastructure charges policies mean for your development project?
Infrastructure Charges are development levies which relate to the delivery of trunk infrastructure across the broader network (e.g. water, sewer, transport, parks, community facilities).
Since 2011, the QLD State Government has mandated a maximum adopted charge (capped rate) for Council Infrastructure Charges. Subsequently, in some areas, entities such as QUU and Unity Water became responsible for management of the water and sewer infrastructure component. The State capped rate has the effect of limiting the charges that can be applied to development.
On 29 July 2016, the Queensland Government implemented an amendment to the State Planning Regulatory Provision (Adopted Charges) July 2012 in the form of the Adopted Infrastructure Charges Schedule 2016. The new schedule identifies the increased capped rate for each development type.
An increase of approximately 1.1% has been applied across the range of development types, including residential, short-term accommodation, commercial and industrial development.
For example, for a 3 bedroom dwelling house or unit, the capped rate has increased from $28,000 per dwelling to $28,3111 per dwelling.
Importantly, while the State Government determines the capped rate, infrastructure charges are applied to development in accordance with the Adopted Infrastructure Charges Resolution (AICR) prepared by each Council or Utility. In most instances, a revised AICR must be adopted before the increased rate can be applied. However, some existing AICR documents already include reference to indexation of levied charges.
What does this mean for your development?
The implications of the abovementioned charges depend on the status of your development project.
- Approved & Paid - The above changes do not apply to development where infrastructure charges have been paid prior to the implementation of the increase.
- No Approved / Due Diligence - For development applications which have not yet been decided, including those in due diligence, the above increase in infrastructure charges should be factored into your consideration of each project.
- Approved & Not Paid - Where development approvals have been granted, but infrastructure charges have not yet been paid, we recommend that you seek specific Town Planning advice. There can be significant variation between approvals and local government areas. Matters such as Infrastructure Agreements and changes to approvals can also vary the impact of the abovementioned changes.
The experienced Town Planning team at Bennett + Bennett are well placed to provide timely, efficient and intuitive advice to assist with your development projects.
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