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Changes to development contributions on horizon


A new development contribution plan could fund more than $13 million of road upgrades if approved by Lake Macquarie council.

The Section 7.12 Plan is currently on public exhibition and seeks to change the way commercial and business development is levied in order to fund public services and amenities.

“Under the current system, development is levied based on a calculation of ‘peak vehicle trips’ generated,” Head of Development and Planning, Justin Day said.

“This can create anomalies where relatively small businesses that generate high volumes of traffic are levied disproportionately, compared to the value of their investment.

“And, due to the structure of the contribution plan, in some cases development is not levied at all.”

The new plan proposes a flat-fee structure based on the value of the development and would apply to non-residential, residential care facilities, and some mixed-use, tourist and visitor accommodation, and moveable dwellings.

Developments valued at less than $100,000 would not be required to pay the levy, those between $100,000 and $200,000 would pay 0.5% of the total cost, and those worth more than $200,000 would pay 1%.

“Overall, the number of commercial and business developers levied will increase, but the amount each contributes will generally be significantly lower,” Mr Day said.

If adopted, the contributions raised would be put towards 13 projects between 2020 and 2036 including intersection upgrades in Mount Hutton, Kahibah and Cardiff Heights.

To view the plan and have your say visit

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