Understanding Developer Contributions and Infrastructure Charges in NSW

It's a fact of life that if you're planning a new build in NSW, whether it's a high-end commercial complex or a custom residential project, you'll need to think about developer contributions, also known as infrastructure charges. We know these fees can look a bit complicated, and they’re often a source of big questions for our clients.

These charges are a mandatory levy from the local council and the state government to fund essential infrastructure (such as new roads and community facilities) required by new developments.

Understanding these costs upfront is crucial because they're a significant and mandatory part of your budget, often adding tens of thousands of dollars to the final price tag. At Buildingwise, we pride ourselves on giving you a clear, honest picture of your project's total cost right from the start.

We're here to break down what these charges are and help steer you in the right direction before you kick off your new building project.

How they work

So, how do these charges actually operate? Simply put, developers pay these contributions for nearly all types of new builds, whether it’s a high-end custom home, a subdivision, or a commercial project.

The money goes towards funding essential infrastructure that supports the new growth. This includes local needs, such as new parks, footpaths, and drainage systems, as well as larger state or regional-level infrastructure, such as major roads and new schools. It's all about making sure the surrounding community can handle the new development.

These charges aren't a surprise fee; they are officially set as a condition of your development consent. Generally, you’ll need to settle them before your construction certificate can be issued or before the actual building work starts on site. These payments can be made in money, by dedicating land, or by actually carrying out the required works instead of paying cash.

How to find information

Finding the exact details for your project might sound like a hassle, but there are clear places to look.

The best place to start is your local council. Every council has its own specific contributions plan. These documents lay out exactly which developments are covered, how they calculate the charges, and what local infrastructure the money will be used for. It’s all clearly mapped out.

Once your project has development consent, the specific charge amount and when you need to pay it will be set out in the conditions of your Development Consent or Complying Development Certificate.

It's also wise to be aware of the different types of contributions. You've got local and state-level charges, such as special infrastructure contributions (SICs) and the newer housing and productivity contribution (HPC). Understanding the different layers helps you know exactly what you're paying for.

Why are they charged? 

These charges are a requirement for developers to contribute their fair share towards the cost of the public infrastructure that new development needs. They help fund new and improved community facilities and services, which ultimately support new residents and businesses as the area grows. It’s about building smarter communities.

This process is a big part of any new project. When you work with Buildingwise, we are fully committed to transparent and upfront budget management. We work with the architect, engineer, and all other necessary consultants to ensure the design aligns with the current building code and your budget.

In a complex project like a luxury build, having an experienced and trustworthy partner is essential for budget certainty. If you’re considering your next custom project (residential or commercial) and want clear answers on the process, timeline, and costs, contact our expert team today to start a transparent conversation.