What These Are

Two ways NSW councils fund local infrastructure

When a development creates additional demand on a council area (more residents, more vehicle trips, more pressure on parks, footpaths, drainage and community facilities), the council can require the developer to contribute toward the cost of providing that infrastructure. In NSW, those contributions sit under the Environmental Planning and Assessment Act 1979.

The Act gives councils two distinct tools: Section 7.11 and Section 7.12. These were renumbered in 2018 from the old s.94 and s.94A respectively, but the underlying mechanics are largely the same. A council will typically use one or the other for any given catchment, set out in its adopted contributions plan.

Quick Reference

Section 7.11 (formerly s.94): contribution tied to a demonstrated nexus, calculated against the council's contributions plan.

Section 7.12 (formerly s.94A): a fixed-percentage levy on the cost of works, no nexus required.

Section 7.4: the basis for Voluntary Planning Agreements (VPAs), often used in larger projects.

The Two Contribution Types

Section 7.11 vs Section 7.12 in detail

Each section uses a different basis for setting the contribution. Knowing which one applies, and how it's calculated, is the starting point for any DA budget.

Section 7.11

Section 7.11 Contributions

Formerly Section 94 of the EP&A Act

A monetary contribution (or land dedication, or works in kind) imposed where the council can demonstrate a clear nexus between the proposed development and the demand it creates on local infrastructure.

  • When it appliesDevelopments that materially increase demand on identified facilities (roads, drainage, open space, community).
  • How it's calculatedPer dwelling, per lot, per person, or per square metre, depending on the council's adopted contributions plan.
  • Who paysThe applicant, generally as a condition of development consent, payable before construction certificate or occupation certificate.
  • Council requirementCouncil must have an adopted s7.11 contributions plan that sets out the nexus, apportionment, and rates.
Section 7.12

Section 7.12 Contributions

Formerly Section 94A of the EP&A Act

A fixed-percentage levy applied to the proposed cost of carrying out the development. No nexus is required: if the council has a 7.12 plan and the project value exceeds the threshold, the levy applies.

  • When it appliesUsed by councils as an alternative to s7.11, often for areas where calculating nexus is impractical.
  • How it's calculatedPercentage of certified cost of works. Common rates: 0% under $100k, 0.5% from $100k–$200k, up to 1% above $250k.
  • Who certifies the costA registered quantity surveyor for projects above the council threshold (commonly $500,000, sometimes lower).
  • Council requirementCouncil must have an adopted s7.12 plan. The 1% cap is set by the EP&A Regulation.
Side By Side

Section 7.11 vs 7.12 at a glance

A quick reference for developers, planners, and accountants assessing which regime applies to a project.

Criteria Section 7.11 Section 7.12
Former name Section 94 Section 94A
Calculation basis Per-unit rates set in the council's contributions plan (dwellings, persons, lots, square metres) Fixed percentage of the certified cost of works
Nexus required? Yes, council must demonstrate the link between development and infrastructure demand No, the levy applies regardless of specific demand
Maximum rate No statutory cap, set by the contributions plan 1% of cost of works (per the EP&A Regulation)
Project value threshold None at the Act level, set by the council plan Typically nil under $100,000, sliding scale above
QS cost report needed? Sometimes, where council uses cost-of-works for any component Yes, almost always above the council's stated threshold
Best suited to Greenfield and infill developments where infrastructure demand can be quantified Areas with diverse, unpredictable development types where nexus is hard to establish
Worked Examples

How the numbers come together

Two illustrative examples for a hypothetical $1,000,000 development. Actual rates vary by council, so always check the relevant adopted contributions plan.

Section 7.11 Example
3-lot subdivision, hypothetical inner-ring council
Net new lots3
Open space contribution per lot$8,200
Roads & traffic per lot$3,400
Community facilities per lot$2,150
Subtotal per lot$13,750
7.11 contribution $41,250
Section 7.12 Example
$1,000,000 commercial fit-out
Certified cost of works (QS report)$1,000,000
Council 7.12 rate (above $250k)1.0%
Calculation$1,000,000 × 1%
QS cost report fee$600 + GST
Turnaround3–5 business days
7.12 contribution $10,000

These figures are illustrative only. Each council adopts its own s7.11 or s7.12 contributions plan setting the actual rates, thresholds, and project categories. Find your council's adopted plan via the NSW Planning Portal, then call us on 1300 795 170 if you'd like a QS cost report prepared to support your DA.

How MCG Helps

QS cost reports for every stage

Whether you're lodging a DA, preparing for a Section 7.12 levy, or negotiating a Voluntary Planning Agreement, we provide the cost evidence councils require.

DA Cost Plans
Certified cost-of-works reports for development application lodgement, formatted to your council's requirements.
Contribution Disputes
Independent QS evidence to support recalculation of a 7.11 or 7.12 contribution where the cost of works has been overstated.
VPA Valuations
Cost reports and works-in-kind valuations for Voluntary Planning Agreements under Section 7.4 of the EP&A Act.
Cost-to-Complete
Progress cost reports for staged developments where contributions are paid against milestones rather than upfront.
FAQ

Common questions on s7.11 & s7.12

Quick answers to the questions developers, planners, and accountants ask us most often.

Section 94 was the original numbering for developer contributions in the NSW Environmental Planning and Assessment Act 1979. In 2018 the Act was renumbered: former s.94 became Section 7.11, and former s.94A became Section 7.12. The substance of how these levies work is largely unchanged, but the section numbers are now updated in all current council contribution plans.
Section 7.11 contributions are tied to a demonstrated nexus between a development and the additional infrastructure it triggers, calculated against a council's specific contributions plan. Section 7.12 is a fixed-percentage levy on the cost of works (typically capped at 1% for projects valued over $250,000) and applies where the council has elected to use a 7.12 plan instead. A council generally uses one or the other for a given catchment, not both.
Section 7.12 is a fixed percentage of the proposed cost of carrying out the development, certified by a quantity surveyor's cost report. Common rates are 0.5% for works between $100,000 and $200,000, and up to 1% for works above $250,000, but the exact percentage is set in the council's 7.12 contributions plan. For example, a $1,000,000 project at a 1% rate triggers a $10,000 contribution.
Most NSW councils require a cost report prepared by a registered quantity surveyor (such as MCG) for any development with a stated cost above $500,000, and many require one above $100,000. The QS cost report is what the council uses as the basis for the 7.12 levy.
Yes. If the contribution amount appears inconsistent with the council's adopted contributions plan, or if the cost of works has been overstated, an independent QS cost report can be lodged in support of a recalculation. In some cases this triggers a formal review or, for development consents, can be raised at the Land and Environment Court.
No. Sections 7.11 and 7.12 are specific to the NSW Environmental Planning and Assessment Act 1979. Other states have equivalent regimes (Victoria's Infrastructure Contributions Plans, Queensland's Infrastructure Charges Schedules, and so on) but with different rules and numbering.
A VPA is a negotiated agreement between a developer and a council under Section 7.4 of the EP&A Act, used in place of (or in addition to) a 7.11 or 7.12 contribution. VPAs commonly involve land dedications, monetary contributions, or works in kind. MCG provides QS valuations and works-in-kind cost reports to support VPA negotiations.
Monetary contributions paid to a council under Sections 7.11 or 7.12 are generally treated as GST-free, as they are payments to a government agency. Always confirm with your tax adviser, as the treatment of works in kind under a VPA can differ.
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