What are Infrastructure Charges?
Infrastructure charges contribute to the provision of essential trunk infrastructure to support new development. Trunk infrastructure is significant infrastructure that supports catchments, such as a treatment plant and sewerage pipes for an entire town. If you think about it in that term, if you had one house and put another house on the same site, there are a lot more ‘flushes’, and the developer contributions go towards making sure there is always capacity in the trunk infrastructure.
Determining the Infrastructure Charges Amount
If you are doing a development, it is useful to talk with Council early to get an idea of the likely cost of the infrastructure charges, to factor these into your project budget. The good news is:
- there is a recognised credit for any existing use/s on the land (even a vacant lot usually has a credit applied);
- infrastructure charges are a one-off payment; and
- it does not have to be made until ‘prior to the commencement of the use’ – e.g. you don’t need to pay until just before you move in to your new building, or until just before your new subdivision plan is signed by Council.
- Not all development will be required to pay infrastructure charges (e.g. a home-based business does not incur infrastructure charges). Development that introduces extra demand on Council’s trunk infrastructure networks will usually incur an infrastructure charge.
- Infrastructure charges are calculated for each development type (dual occupancy, warehouse, shop, theatre, hospital etc.) and are calculated after considering the likely future type, scale, location and timing of development, and the corresponding demand that will be generated for each trunk infrastructure network and provides a methodology for apportioning this cost to development.
- Infrastructure charges are not linked to the level of assessment, so they may be payable for accepted development.