What is a water supply and sewerage developer charge?

    These charges are an upfront contribution to the cost of providing the existing and future water supply and sewerage assets required to service growth within the region. The charges are determined using a calculation methodology set by the NSW Independent Pricing and Regulatory Tribunal (IPART) and are required to be reviewed every five years. These charges are separate to ongoing annual and volumetric charges for water supply and sewerage services which are levied to recover the efficient costs of operating and maintaining those networks.

    Are these the same as Developer Contributions I am required to pay?

    No. Developer Contributions are levied under Sections 7.11 and 7.12 of the Environmental Planning and Assessment Act and provide revenue for assets including libraries, drainage infrastructure and water quality devices. Water Supply and Sewerage Developer Charges are levied under the Water Management Act and are unrelated to Developer Contributions.

    Why don’t I pay these charges in the Hunter Water or Sydney Water areas?

    In 2008, the NSW Treasurer set water, sewerage and stormwater developer charges for Sydney Water and Hunter Water to Zero. Prudent and efficient growth related expenditure by Sydney Water and Hunter Water has been recovered through their retail prices across their broader customer base. This is illustrated here and does not apply to the Central Coast.

    What’s an equivalent tenement? Is this the same as a house?

    IPART requires Water Supply and Developer Charges to be levied on an Equivalent Tenement (ET) basis. This allows the comparison of the demand associated with a given development (eg. a factory, block of units, granny flat) compared to a typical residential house. The assessment matrix that defines the ET value of an individual development is described within the DSP document and Appendix H.

    How do I obtain a quote for Water Supply and Sewer Developer Charges for my development?

    Potential applicants can review Appendix H of the relevant Development Servicing Plan which includes an assessment matrix and worked examples for different development types to determine the amount of Equivalent Tenements (ET) payable for their proposed development. Council’s website will also include the current developer charges rates ($/ET). Formal advice relating to Water Supply and Sewerage Developer Charges payable will only be provided following the receipt of a Water Management Act Application form

    Why are there two Development Servicing Plans, aren’t we one council?

    The different DSPs areas reflect the different rates of historical infrastructure investment and population uptake, as well as future population projections and future asset requirements. IPART’s methodology requires the DSP areas to be reflective of these trends as they factors influence the amount of the developer charges

    Will the new DSPs apply to my existing water management act application?

    The new DSPs will only apply to new water management act applications lodged after 1 November 2019. Previous applications will not automatically switch to the new DSP as this may affect the value of developer charges payable (per equivalent tenement), the amount of equivalent tenements payable and the value of credits for works in lieu of developer charges.

    What if I want the new DSP to apply to my existing water management act application?

    Applicants would need to cancel an existing application and lodge a new Water Management Act Application (fees would apply). This would trigger a new assessment of the proposed development and trigger the preparation of a new Section 306 (Requirements) Certificate.