Section 94 contributions are an important part of financing community infrastructure in Australia. However, navigating the complexities of these levies can be challenging, especially when it comes to determining the appropriate payments in a timely manner, without it leading to project delays. This is where the expertise of a Sydney quantity surveyor can come into play.
Understanding Section 94
Section 94 levies are fees charged by local councils in NSW to fund community infrastructure projects such as roads, public transport, stormwater, and other infrastructure. These levies are calculated based on the development’s impact on the local community and the cost of providing the necessary infrastructure. Understanding the calculation process is crucial for developers and planners to ensure that they are paying the correct Section 94 contribution total.
The calculation of Section 94 contributions roughly translates to about 1% of the proposed development cost for projects estimated to cost over $500,000. Previously, this was capped at a total contribution of $30,000 for ‘greenfield’ (undeveloped) areas, and $20,000 for infill areas, for each dwelling or residential lot authorised to be created, however, this was recently changed for some developments.
Hiring a Sydney Quantity Surveyor
A quantity surveyor in Sydney can help developers and planners navigate the complexities of Section 94 levies. Quantity surveyors are experts in the construction industry and have experience in calculating the cost of infrastructure and building projects. They are usually hired at the beginning of a project to estimate the cost of development and provide the developer with a report on where money will be spent. After the builder and developer receive a cost estimate for their project, a Sydney quantity surveyor can use this information to calculate what Section 94 contributions will be required. Hiring an independent expert to provide cost-estimating services means that estimation will be accurate, and developers will not be overcharged for Section 94 contributions.
Communicating with Local Councils
Developers and planners should engage with local councils early in the development process to understand the requirements for Section 94 contributions, as these may differ depending on the development context. Local councils may have different requirements for Section 94 levies, especially in greenfield lots and areas that require establishment.
Engaging with Industry Experts
Another expert tip for developers and planners to navigate the complexities of Section 94 levies is to engage with industry experts. Architects, engineers, and town planners can provide valuable insight into the impact of development on the local community and the necessary infrastructure requirements. By engaging with industry experts early in the development process, developers and planners can ensure that their development plans align with the council’s requirements and understand whether their business will require significant contribution requirements. Industry experts such as a quantity surveyor in Sydney can also assist in providing accurate cost estimates for infrastructure projects and help developers and planners swiftly process Section 94 contribution totals to get on with the job promptly.
Providing Accurate Information
Providing accurate information is crucial for developers and planners to navigate the complexities of Section 94 contributions. Local councils require developers and planners to provide detailed information about their development, including the number of dwellings, the size of the development, and the estimated cost of the project. Incorrect information and poor regulatory compliance can lead to significant extended delays in projects getting the green light to go ahead. This can ultimately lead to cost blowouts and decreased project feasibility.
Do you need a quantity surveyor in Sydney?
While Section 94 contributions are an important way to finance local community infrastructure, there is no point in letting them lead to withheld development due to tedious or incorrectly detailed Section 94 reports. Speak to an expert today to ensure correct and appropriate Section 94 contributions occur for any new projects in a timely manner. At Section 94, our team of highly qualified quantity surveyors can help organise all the required and recommended quantity surveyor reports for your development.
With over a decade of industry experience, our qualified building quantity surveyors are AIQS certified with a fast turnaround time and clear communication. Give us a call today at 0413 953 869 or email us at info@section94.com.au to discuss our quality budget services for residential and commercial builds.