Section 94 contributions are development contributions imposed by NSW councils to fund the local infrastructure required as a result of new development. Under the Environmental Planning and Assessment Act 1979 (NSW), these contributions were renamed Section 7.11 contributions following 2017 amendments. Both terms are still commonly used across councils, planning documents and development applications when assessing project obligations. This month, we explain how the system works, what developers pay for, how Section 94 cost summary reports are prepared, and provide general information about the process. Requirements vary between councils, so thresholds and reporting obligations should always be confirmed for each project stage requirements.
What are Section 94 Contributions?
Section 94 contributions are development levies imposed by local councils in New South Wales to help fund the infrastructure required to support new development.
These contributions are made under the Environmental Planning and Assessment Act 1979 (NSW) and are now formally referred to as Section 7.11 contributions, although the older term remains widely used across the industry. They are typically applied when a development application is lodged and assessed, ensuring that growth does not place an unfair burden on existing public infrastructure or ratepayers.
Developers are required to pay Section 94 contributions when their project is expected to increase demand on local services or infrastructure. Each council sets its own contribution plan, which outlines how levies are calculated and what developments are impacted. These plans vary significantly between local government areas and may change over time depending on infrastructure needs and policy updates. As a result, developers must review the relevant council contribution plan early in the design and approval process.
Section 94 vs Section 7.11: What changed?
Section 94 contributions were renamed Section 7.11 contributions following amendments to the Environmental Planning and Assessment Act 1979 (NSW) in 2017. The reform formed part of a broader restructure of development contribution provisions designed to simplify terminology across the planning system. While the numbering changed, the purpose remained unchanged: developers contribute to the cost of local infrastructure required by new growth. Councils continue to apply contributions through adopted contribution plans, and the legislative framework still enables funding for infrastructure such as roads, parks, drainage and community facilities. Overall, the change was largely administrative, with no significant shift in how contributions are calculated or applied across New South Wales today.
Why both terms are still used
Despite the formal renaming to Section 7.11 contributions, the term Section 94 remains used by councils, consultants, and developers across NSW. This is largely due to legacy documentation, existing contribution plans, and long-standing industry practice. Many planning instruments and reports reference Section 94 which reinforces its use in dayto-day development assessment and reporting. To answer a common question: yes, Section 94 is the same as Section 7.11 contributions. Both refer to the same mechanism for collecting development contributions under the Environmental Planning and Assessment Act 1979 (NSW). The difference is purely terminology, meaning identical obligations regardless of which term appears in council documentation or assessment reports.
What development contributions pay for
Development contributions are used by local councils to fund the infrastructure required to support population growth driven by new development. As residential, commercial, and mixed-use projects increase demand on existing services, these contributions help ensure councils can deliver adequate infrastructure without placing the full financial burden on existing ratepayers.
Local infrastructure, open space, roads and community facilities
Section 7.11 (formerly Section 94) contributions are commonly allocated toward a range of essential public infrastructure. This includes upgrades and construction of local roads, drainage systems, and pedestrian footpaths that improve accessibility and transport safety. Contributions also support the creation and maintenance of parks, playgrounds, and sporting facilities that cater to growing community needs. In addition, funds may be directed toward libraries, community centres, and other public amenities that provide social, educational, and cultural services.
The exact infrastructure funded varies between councils, as each local government area adopts its own contribution plan. These plans define what works are eligible, how funds are apportioned, and which developments are required to contribute, meaning requirements can differ significantly depending on location and project type.
What is a Section 94 / cost summary report?
A Section 94 cost summary report is a document that estimates the total cost of construction works for a development. Councils require this report as part of the development application process to assess applicable contributions and ensure consistency in how project values are declared. It provides an independent and structured assessment of construction costs, helping planning authorities determine whether contribution thresholds are met. A quantity surveyor typically prepares this report to ensure accuracy, compliance, and alignment with recognised cost estimation standards used in development assessment.
Estimated cost of works and how it is calculated
The Estimated Cost of Works (ECOW) represents the total anticipated cost of constructing a development, including materials, labour, preliminaries, and contractor margins. It may also include site preparation, demolition, and associated constructionrelated expenses. However, exclusions often apply, such as land value, financing costs, and certain professional fees, depending on council guidelines. Councils require consistency in how ECOW is calculated to ensure fair assessment across all developments. Accuracy is critical, as underestimating or overestimating project costs can impact contribution calculations and may result in delays during the development approval process.
Which report you need by project value
| Project Value | Report Required | Who Can Prepare It |
|---|---|---|
| Lower-value projects (Greater than $100,000*) | Cost Summary Report | Applicant/designer (where permitted by council requirements) |
| Higher-value projects (Greater than $500,000*) | Registered Quantity Surveyor Cost Report | Registered Quantity Surveyor |
For lower-value developments, councils may accept a simpler cost summary prepared by the applicant or project designer, depending on local requirements. For higher-value projects, a registered quantity surveyor’s report is typically required to ensure independent and defensible cost estimation.
It is important to note that thresholds and reporting requirements vary between councils and are subject to change.
*This is general information and not legal advice. Developers should always confirm the current requirements with the relevant local authority before preparing documentation.
How a quantity surveyor prepares your cost report
A quantity surveyor begins by thoroughly reviewing all available project documentation, including architectural plans, engineering drawings, and construction specifications. This review establishes a clear understanding of the proposed development, its scope, and its construction methodology. The project scope is carefully analysed to identify all elements that contribute to the overall build cost, including structural components, finishes, services, and external works. This detailed assessment ensures that no key cost items are overlooked and that the report accurately reflects the intended design as submitted in the development application.
Once the scope has been assessed, the quantity surveyor applies recognised estimating methods to calculate the Estimated Cost of Works. These methods are based on industry standards and current construction market rates to ensure consistency and reliability. The resulting documentation is prepared in a format that aligns with council requirements, supporting a smoother assessment process. A professionally prepared report helps reduce delays in DA approvals by minimising queries from planning authorities and providing a clear, defensible cost structure. This supports council officers in efficiently assessing contributions and ensures the development application proceeds with fewer administrative obstacles.
When and how to lodge with your development application
A Section 94 or cost summary report is typically submitted as part of the development application lodgement, alongside architectural plans, engineering drawings, and other supporting documentation required by council. It forms part of the overall assessment package reviewed by the planning authority. Once lodged, council officers use the report to assess the estimated cost of works and determine whether development contributions apply under the relevant contribution plan, forming part of the broader DA assessment process.
Submitting a complete documentation package is critical to avoid unnecessary delays. If a required cost report is missing or incomplete, councils may place the application on hold or request additional information, extending assessment timeframes. In some cases, this can also result in resubmission requirements, further delaying approval.
Developers should always check the specific requirements of the relevant local council before lodgement, as documentation standards, thresholds, and supporting evidence can vary significantly between jurisdictions.
Common mistakes that delay DA approval
Delays in development applications often occur due to avoidable errors in cost reporting and documentation, particularly where Section 94 contribution requirements are not correctly addressed.
Incorrect Estimated Cost of Works is a frequent issue, often caused by incomplete scope interpretation or outdated cost assumptions. Outdated report formats can also lead to rejection, as councils require specific documentation structures aligned with current planning guidelines.
Missing supporting documentation, such as plans or specifications, can prevent accurate assessment of the project. Misunderstanding council thresholds is another common problem, with requirements varying significantly between local government areas.
Relying on informal builder estimates instead of a compliant quantity surveyor report often results in inconsistent or non-defensible costings. In addition, inconsistent project values across submitted documents can trigger further review and delay approvals.
Engaging qualified quantity surveyor services early in the design process helps ensure accurate reporting, compliance with council requirements, and a smoother development application pathway.
Need a Section 94 cost summary report for your DA? Section 94 prepares registered quantity surveyor reports.
Frequently asked questions / People Also Ask
Is Section 94 the same as Section 7.11?
Yes. Section 94 contributions were renamed Section 7.11 contributions following amendments to the Environmental Planning and Assessment Act 1979 (NSW) in 2017. The terminology changed, but the underlying purpose and application remain the same, with both referring to development contributions used to fund local infrastructure.
How much are Section 94 contributions?
There is no fixed amount for Section 94 contributions. Costs vary depending on the local council, the type of development, and the applicable contribution plan. Each council sets its own rates based on infrastructure needs, meaning contributions can differ significantly between locations and project types.
Who can prepare a Section 94 cost report?
A Section 94 cost report is typically prepared by a qualified quantity surveyor, particularly for higher-value developments. Some councils may allow simpler cost summaries to be prepared by applicants or designers, but registered quantity surveyor reports are generally required for more complex or higher-value projects.
When do I need a registered quantity surveyor’s cost report?
A registered quantity surveyor’s cost report is usually required when a development exceeds a council’s specified value threshold or involves more complex construction works. Requirements vary between councils, so it is important to check the relevant local planning controls before lodgement.
How is the estimated cost of works calculated?
The estimated cost of works is calculated based on construction scope, including materials, labour, preliminaries, and contractor margins. It excludes items such as land value and financing costs. Quantity surveyors apply recognised industry methods to ensure the estimate is accurate, consistent, and compliant with council requirements.