Planning contributions and agreements
Development Contributions
Section 7.12 'Fixed Development Consent Levies'
Randwick City levies development contributions for development applications and complying development certificates where the cost of works is over $100,000. These contributions are utilised towards providing public amenities and infrastructure required as a consequence of development to service growing communities. Development contributions (monetary or in-kind) help to provide for parks, local road improvements, town centre improvements, community centres and other services.
Randwick City s7.12 Plan 2024
The Randwick City s7.12 Plan 2024 is applicable to development applications and complying development applications lodged from 5 June 2024. The new Plan repeals the former s94A Plan 2015.
The s7.12 Plan 2024 applies to most sites across the Randwick Local Government Area, with the exception of Kensington and Kingsford Town Centres and the Bundock Street Site which are subject to separate contributions schemes.
The s7.12 Plan 2024 allows developer contributions to be levied for new development to help fund the provision of public infrastructure, facilities and services across the City.
The levy is expressed as a percentage rate based on the cost of works as follows:
| Cost of Development | Maximum Percentage Contributions Levy |
|---|---|
| Up to $100,000 | Nil |
| $100,001 - $200,000 | 0.5% |
| More than $200,000 | 1% |
A list of capital works and infrastructure items that development contributions levies are utilised to partially fund are included in the Schedule of Works in the s7.12 Plan 2024.
S7.12 Randwick City Development Contributions Plan 2024 PDF, 2807.31 KB
Kensington and Kingsford s7.12 Plan 2019
The Kensington and Kingsford s7.12 Plan 2019 applies exclusively to land within the Kensington and Kingsford Town Centres (land zoned E2 Commercial Centre). Levies collected are utilised towards the provision and augmentation of public infrastructure and amenities, as well as continued upgrades of the existing public domain setting of both town centres. A list of infrastructure items needed to support growth in the town centres over the next 15 years are provided in Schedule 1 of the Plan and include: essential public domain works such as footpath widening and the undergrounding of overhead powerlines, Council owned carparks upgrades, and the provision of open space and street furniture to improve the amenity of the town centres.
Both Kensington and Kingsford town centres are expected to undergo substantial urban renewal and projected to accommodate an estimated additional floor space of 24,900m2 for employment and 103,700m2 for residential over the next 15 years, as a result of amendments to maximum building height and density provisions under the Randwick Local Environmental Plan 2012 (RLEP 2012). As such, development applications and complying development proposals are subject to a higher percentage levy, outlined as follows:
| Cost of Development | Maximum Percentage Contributions Levy |
|---|---|
| Up to $100,00 | Nil |
| $100,001 - $200,000 | 0.5% |
| $200,001 - $250,000 | 1% |
| More than $250,000 | 2.5% |
S7.12 Development Contributions Plan: Kensington and Kingsford Town Centres 2019 PDF, 751.01 KB
Bundock Street s94 Plan
A site specific plan applies to the Department of Defence site located at Bundock Street and Avoca Street, Kingsford, described as Lots 2 & 3 DP 1009660. The eastern part of the Commonwealth owned originally greenfield site has been redeveloped into residential. Development levies under this plan are calculated on a per allotment basis and utilised towards public facilities including community and recreational facilities and public parks located within the vicinity of the site.
Section 94 Contributions Plan 2000 (Bundock Street) PDF, 182.09 KB
Prince Henry Site Community Facilities
A site specific deed of Agreement (2005) applies to the Prince Henry site, Little Bay. For more information you can download the Prince Henry Site - Little Bay - Community facilities information sheet PDF, 704.14 KB
Exceptions to the Payment of Development Contribution Levies
Under a Ministerial Direction, there are a number of exemptions from the payment of development contributions levies. These include the following scenarios:
- Where the proposed cost of carrying out the development is $100,000 or less; and
- Development applications or complying development located within the Port Botany Lease Area identified in the State Environmental Planning Policy (Transport and Infrastructure) 2021.
Paying the Development Contribution
If a development contribution levy is required, the consent authority or certifying authority will include a condition in the development application consent or complying development certificate specifying the amount of contribution. This condition will advise when the contribution needs to be paid. Contributions are indexed quarterly in line with the CPI.
Payments of the development contributions levy are to be made at Council’s customer service centre. Contact Council’s Call Centre for further information on development contribution levy payments.
Planning Agreements Policy
Planning agreements are an alternative mechanism for developers to contribute towards public facilities. The Randwick City Council's Planning Agreement Policy PDF, 124.37 KB establishes a framework to guide the preparation of planning agreements in a manner that is efficient, fair, transparent and accountable.
Affordable Housing Contributions
Providing affordable rental housing is a key part of Randwick City's planning strategy. It helps:
- ensure lower income households continue to live and work locally in the Randwick LGA
- facilitate a socially diverse and inclusive community
- support the economy.
Affordable Housing Contributions Scheme
As part of the planning strategy and Randwick LEP 2012 an Affordable Housing Contributions Scheme applies across the Kensington and Kingsford town centres and also within the Housing Investigation Areas. When development consent is granted, developers must contribute to an affordable housing levy (See Clause 6.25, 6.26 and 6.27 of Randwick LEP 2012). “Excluded development” is exempt from the payment of the levy.
The clauses should be read in conjunction with the relevant affordable housing plan:
Kensington and Kingsford Town Centres Affordable Housing Plan PDF, 816.31 KB (adopted on 10 December 2019)
Housing Investigation Areas Affordable Housing Plan (2023) PDF, 9292.72 KB (adopted on 20 June 2023).
The plans outlines how we will manage the schemes, operational details and who is eligible for tenancy. And the types of development which are exempt from a levy.
What is a contribution?
Contributions include:
- an in kind contribution - a built unit (with a minimum total floor area of 50sqm) to be used as affordable rental housing with any remainder being paid as a money contribution or
- a money contribution to be used for boarding houses and serviced apartments.
Contribution rates
Kensington and Kingsford Town Centres
The following contribution rates apply to the Kensington and Kingsford Town Centres:
For development applications lodged from 13 August 2020 and up to and including 13 August 2022, the affordable housing contribution rate is 3% of the total floor area of the development used for residential purposes.
For development applications lodged after 13 August 2022, the affordable housing contribution rate is 5% of the total floor area of the development used for residential purposes.
Total floor area is defined in clause 6.25 of the Randwick LEP 2012.
Housing Investigation Areas
The following contribution rates apply to the Housing Investigation Areas:
| Housing Investigation Area | Percentage of total floor are used for residential purposes |
|---|---|
| North Kensington | 5% |
| West Randwick | Land zoned E1 Local Centre: 3% |
| High Street | 3% |
| Magill Street | 3% |
| Kingsford South | 3% |
Monetary Contributions
Council’s preferred contribution is by way of an in-kind dedication to Council of completed dwellings in accordance with Council’s Affordable Housing Plans. Monetary contributions apply where the calculated total residential floor area to be dedicated is less than 50m2 or developments where there is no subdivision such as co-living housing. The following equivalent affordable housing contribution rates apply for residential uses until 31 December 2025:
3% = $438.75 per sqm
5% = $731.25 per sqm
The monetary contributions rate is indexed twice a year in January and July according to the following Plans:
Kensington and Kingsford Town Centres Affordable Housing Plan PDF, 816.31 KB
Housing Investigation Areas Affordable Housing Plan (2023) PDF, 9292.72 KB.
Goals
The schemes aim to provide about 299 affordable housing rental units for very low to moderate income households over the next 15 years.
More information
Contact the Strategic Planning team on 9093 6992 for further information.