What is a Section 94A contribution?

What is a Section 94A contribution?

A Section 94a contribution is a payment made by developers to local Council (in NSW), in order to enable Council to construct or provide additional public amenities and services to meet the requirements of a new development.

What are s94 contributions used for?

The provisions of section 94 (s94) of the EP&A Act enable councils to obtain development contributions as a means for funding local infrastructure and services that are required as a result of new development.

Are Section 94 contributions subject to GST?

NOTE: Development Contributions are also subject to GST. When do I have to pay the levy? Generally, S94A contributions must be paid prior to the release of the Construction Certificate (CC) or Complying Development Certificate (CDC).

What are Section 64 contributions?

Section 64 contributions are levied under the Local Government Act 1993 towards water and sewer infrastructure. Council must have a Developer Servicing Plan in order to levy a Section 64 contribution.

Are contributions subject to GST?

This means the donation is not a gift and will be subject to GST (unless the item is GST-free or input taxed). The donor will be entitled to claim a GST credit for the GST included in the amount paid, provided they are registered for GST, and the donation has been made as part of the donor’s business activities.

Do infrastructure charges include GST?

Generally, where a developer is required to undertake infrastructure works in order to gain development approval from a council, the infrastructure contribution will not constitute consideration for a taxable supply (and, therefore, will not be subject to GST) due to the application of Division 81 of the GST Act.

What is a Section 68?

WHAT IS A SECTION 68 APPROVAL? Section 68 of the Local Government Act 1993 speci- fies a wide range of activities where approvals are required to be obtained from Council. Council is the only authority that can issue section 68 approvals.

What are headworks charges?

Headworks Charges: Is a charge made by Authorities such as Councils, Water Authorities or Power Suppliers to cover the cost of providing, maintaining and extending infrastructure such as reservoirs, sewerage plants and the like.

What is a Development Contributions Plan?

Developer contribution plans set out the framework and requirements proposed to help fund, plan and deliver infrastructure and services to meet the needs of current and future Council residents in a planned and sustainable manner.

Why was section 94A added to the Constitution?

Section 94A was introduced to allow appropriate development contributions to be levied in areas, such as: • rural and regional areas, where there are slow rates of development or development is sporadic; and • established urban areas, where development is mainly ‘infill’ development and is also sporadic.

What are exemptions from section 94A for Bankstown?

Section 94A Development Contributions Plan – Bankstown 9 (draft for exhibition May/June 2017) Council may consider exempting the following development, or components of developments from the section 94A levy: (g) development associated with providing infrastructure funded by section 94A levies;

What is the purpose of the section 94A Levy?

A section 94A levy is therefore proposed to enable the collection of contributions for the purposes of augmenting existing public facilities and providing new public facilities.

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