Sec 94A ContributionsCouncils in NSW now have the right to include the following costs in calculating Section 94A contribution fees. Their fees are based upon a percentage of the cost of the work. A quantity surveyor (applications over $500,000) or an approved person (applications $200,000 - $500,000) is required to certify the following costs are included in calculating the building costs:
€ inspected the plans the subject of the application for development consent or construction
certificate.
€ prepared and attached an elemental estimate generally prepared in accordance with the Australian
Cost Management Manuals from the Australian Institute of Quantity Surveyors.
€ calculated the development costs in accordance with the definition of development costs in the
S94A Development Contributions Plan of the council of [insert] at current prices.
€ included GST in the calculation of development cost.
€ measured gross floor areas in accordance with the Method of Measurement of Building Area in the
AIQS Cost Management Manual Volume 1, Appendix A2.
Signed: ____________________________________
Name: ____________________________________
Position and Qualifications: ____________________________________
Date: ____________________________________
The EP&A regulation clause 25J is as follows;
Refer to paragraph 5 below to confirm that this has nothing to do with DA fees.
Environmental Planning and Assessment Regulation 2000
25J Section 94A levy—determination of proposed cost of development
(1) The proposed cost of carrying out development is to be determined by the consent authority, for the purpose of a section 94A levy, by adding up all the costs and expenses that have been or are to be incurred by the applicant in carrying out the development, including the following:
(a) if the development involves the erection of a building, or the carrying out of engineering or construction work—the costs of or incidental to erecting the building, or carrying out the work, including the costs (if any) of and incidental to demolition, excavation and site preparation, decontamination or remediation,
(b) if the development involves a change of use of land—the costs of or incidental to doing anything necessary to enable the use of the land to be changed,
(c) if the development involves the subdivision of land—the costs of or incidental to preparing, executing and registering the plan of subdivision and any related covenants, easements or other rights.
(2) For the purpose of determining the proposed cost of carrying out development, a consent authority may have regard to an estimate of the proposed cost of carrying out the development prepared by a person, or a person of a class, approved by the consent authority to provide such estimates.
(3) The following costs and expenses are not to be included in any estimate or determination of the proposed cost of carrying out development:
(a) the cost of the land on which the development is to be carried out,
(b) the costs of any repairs to any building or works on the land that are to be retained in connection with the development,
(c) the costs associated with marketing or financing the development (including interest on any loans),
(d) the costs associated with legal work carried out or to be carried out in connection with the development,
(e) project management costs associated with the development,
(f) the cost of building insurance in respect of the development,
(g) the costs of fittings and furnishings, including any refitting or refurbishing, associated with the development (except where the development involves an enlargement, expansion or intensification of a current use of land),
(h) the costs of commercial stock inventory,
(i) any taxes, levies or charges (other than GST) paid or payable in connection with the development by or under any law,
(j) the costs of enabling access by disabled persons in respect of the development,
(k) the costs of energy and water efficiency measures associated with the development,
(l) the cost of any development that is provided as affordable housing,
(m) the costs of any development that is the adaptive reuse of a heritage item.
(4) The proposed cost of carrying out development may be adjusted before payment, in accordance with a contributions plan, to reflect quarterly or annual variations to readily accessible index figures adopted by the plan (such as a Consumer Price Index) between the date the proposed cost was determined by the consent authority and the date the levy is required to be paid.
(5) To avoid doubt, nothing in this clause affects the determination of the fee payable for a development application.
COSTS The cost of preparing the estimates is to be born by the applicant and will run into thousands of dollars. From the above the Councils charge fees on GST, a tax and consultants fees. Costs of building include: Demolition & Alterations
Hydraulic services
Mechanical services
External doors and windows
Internal walls, screens and doors
Floor finishes
Ceiling finishes
Fittings and equipment
Consultants fees
Preliminaries and margins
GST
+ more
This levy is only to be imposed in rural areas where there is little development of where there is infill housing in urban areas. Please also refer to the following Practice Notes from the Department of Planning.
http://www.planning.nsw.gov.au/planning_reforms/p/final_practice_note_section94a_contributions_plans.pdf
http://www.planning.nsw.gov.au/planning_reforms/p/final_practice_note_template_s94a_development_contributions_plan.pdf
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