Section 94 remains a common term for developer contributions in NSW, although the legislation now uses Sections 7.11 and 7.12. For developers, planners and financiers, this distinction matters because each mechanism can affect feasibility, consent conditions and council contributions. A sound estimate begins by identifying which contribution pathway applies.
NSW councils administer local infrastructure contributions under the Environmental Planning and Assessment Act 1979 and relevant contributions plans. Section 94 provides quantity surveying services for council-facing cost reports, development cost assessments and related project advice. This guide explains the legacy terminology and how Sections 7.11 and 7.12 differ. It also covers EDC and the checks needed before relying on an estimate.
What is Section 94 and how does it relate to Sections 7.11 and 7.12?
Section 94 is the former name for NSW local infrastructure contributions. These are now principally addressed under Sections 7.11 and 7.12 of the Environmental Planning and Assessment Act 1979. The legacy term remains common in property and planning, but current project documentation should use the present legislative references.
Section 7.11 contributions respond to infrastructure demand
Section 7.11 allows a consent authority to impose a contribution where development creates additional demand for public amenities or services. The contribution must be authorised and calculated under the applicable council contributions plan. Calculation methods vary by council and contribution area. A plan may use dwelling numbers, additional residents, gross floor area, lots or another development measure. Existing lawful development, land dedication and indexation can also affect the result. For this reason, a Section 7.11 liability should not be estimated using a generic statewide rate. The current council plan for the property and development type is the starting point.
Section 7.12 uses a levy based on development cost
Section 7.12 is an alternative mechanism based on the proposed cost of carrying out development. It applies where the relevant contributions plan authorises the levy. A consent authority cannot impose both Section 7.11 and Section 7.12 contributions under the same development consent. The applicable percentage, thresholds, exclusions and special provisions must still be checked against the current statutory framework and council plan. Section 94 contributions should therefore not be budgeted by applying a remembered percentage to a headline construction cost.
The key distinction is that Section 7.11 responds to infrastructure demand, while Section 7.12 is tied to development cost. Identifying which mechanism applies is the first step toward estimating the contribution accurately.
How Section 7.11 council contributions are estimated
Estimating a Section 7.11 contribution is primarily a planning exercise. The council contributions plan sets the relevant works program, contribution catchments and calculation formulas for the area. Developers should review the plan early because the contribution can affect feasibility, acquisition assumptions and funding requirements. Leaving it until the design is advanced can expose a statutory cost that should have been allowed for earlier.
Start with the current contributions plan
The applicable plan should be confirmed using the site’s location, contribution catchment and proposed use. Councils may have several plans covering different precincts or development categories, which can be amended, replaced or indexed. The NSW Department of Planning, Housing and Infrastructure states that councils administer local infrastructure contributions. It directs applicants to the relevant council for specific plans and rates. The development team should use the plan to apply to the current application, rather than an earlier project schedule. Record the plan version and indexation date used so later reviews can trace the basis of the calculation.
Identify development units and available credits
A Section 7.11 calculation may depend on the net increase created by the proposal. The plan may distinguish between existing and proposed dwellings, land uses or other development units. Existing lawful development may also create a credit where the plan allows it. Supporting information may include subdivision plans, dwelling schedules, floor areas, evidence of existing use and staging details. If the proposal changes, the estimate should be reviewed because changes in yield, use or staging can affect the contribution.
Supporting information may include subdivision plans, dwelling schedules, floor areas, evidence of existing use and staging details. These documents help establish the inputs used in the council formula. If the proposal changes, the estimate should be reviewed because changes in yield, use or staging can affect the contribution.
A reliable Section 7.11 estimate depends on using the correct plan, development inputs and underlying assumptions. Those inputs should be checked again if the proposal or council plan changes before payment.
How Section 7.12 council contributions are estimated
Section 7.12 requires careful attention because the levy is based on the proposed cost of carrying out development. The applicable contributions plan authorises the levy, while the statutory framework governs how the development cost is assessed. The calculation should not simply use a builder’s contract price. The relevant cost base can include and exclude specific items, so it needs to be prepared for the contribution purpose.
Establish the correct cost of carrying out the development
The cost assessment should reflect the scope required by the legislation and council. Depending on the proposal, this can include building work, demolition, excavation, site preparation, engineering and other construction works. Some categories may be excluded. The treatment of land, finance, legal costs, management, fittings and other items depends on the applicable requirements. The estimate should be checked against current requirements rather than copied from a feasibility budget or contract sum.
For council submissions, a quantity surveyor can prepare a Section 94 / DA report from the current design information. The report documents the estimate basis and key assumptions for council review.
Apply the council plan only after the cost base is established
Once the relevant cost is established, check the council plan for levy methods, thresholds, indexation and payment rules. Special provisions may also apply in particular contribution areas. An understated cost base can reduce the provisional contribution, while including excluded costs can overstate it. Either can affect feasibility and raise questions during assessment.
The council plan should only be applied after the statutory cost base has been confirmed. This helps ensure the levy is calculated using the correct project value and current plan requirements. If the design, scope or staging changes, the cost assessment should be reviewed before the contribution is finalised.
A reliable Section 7.12 estimate requires the correct statutory cost base before applying the current council plan. If the design or scope changes, the assessment should be reviewed before the contribution is finalised.
Where estimated development cost fits into the process
Estimated development cost (EDC) is a defined NSW planning measure used for development pathways, assessment fees and application requirements. It replaced earlier planning cost measures with a single methodology. A key distinction is that EDC is not automatically the Section 7.12 levy base. NSW Planning guidance states that EDC does not affect development levies. The two calculations may use similar project information, but they serve different statutory purposes.
EDC reports have their own requirements
For developments with an EDC above $3 million*, NSW Planning states that an EDC report is required. For non-state-significant projects above this threshold, a qualified quantity surveyor should prepare the report. The surveyor should be a member of AIQS or RICS and follow the applicable AIQS practice standard and standard form.
*This EDC threshold reflects NSW Planning requirements current as of 2026 and should be checked against current guidance before lodgement.
The Australian Institute of Quantity Surveyors publishes the NSW EDC practice standard. An EDC report and a Section 7.12 cost assessment may both be relevant to the same project. However, the same figure should not be reused without checking the applicable requirements.
Keep each project cost figure tied to its purpose
Project teams may hold several cost figures, including feasibility budgets, lender budgets, EDCs, contract sums and Section 7.12 assessments. Each can apply different inclusions, exclusions, assumptions and valuation dates.
Using one figure for every purpose can create inconsistencies during assessment. Each cost report should therefore identify its purpose, valuation date, source documents and key assumptions. This helps prevent a feasibility figure from being mistaken for a council submission figure or lender assessment.
The practical rule is simple: use the cost measure required for the specific planning or contribution purpose. If the design or scope changes, each relevant cost assessment should be reviewed separately.
What can change the contribution before payment?
A feasibility estimate may not be the final amount payable. Indexation, payment timing, development amendments and other plan provisions can change the contribution after consent. The consent condition and current council contributions plan remain the controlling documents. A preliminary estimate should therefore be treated as a budgeting allowance until the contribution is formally calculated.
Design changes and staging can affect the calculation
Changes to dwelling yield, gross floor area, land use or staging can alter the inputs used under Section 7.11. For Section 7.12, changes to the works can affect the proposed development cost. A modification application may therefore require the contribution to be reviewed. The same applies where works move between approval packages or a project is divided into stages. Project records should clearly identify which scope sits within each consent and which assessment supports it. A revised estimate should identify the drawing revision and scope used so changes can be traced between project stages.
Indexation and payment dates matter
Many contributions plans include indexation, meaning an amount calculated at consent can change before payment. The payment trigger can also vary by development type and consent condition. For feasibility, the project team should record the base contribution and allow for possible indexation. This helps finance teams and lenders distinguish the consent-stage estimate from the contribution expected at the relevant payment milestone.
The contribution should therefore be reviewed whenever the project scope, staging or payment timing changes. Final funding allowances should be based on the current consent condition and council contributions plan.
Common errors when estimating council contributions
Errors often arise when teams use outdated contribution amounts, the wrong council plan or interchangeable cost measures. Changes to yield, staging or development scope may alter the calculation and should trigger a review. These mistakes can distort feasibility before the development application is lodged.
Common issues include:
- using a previous council rate without confirming the current plan
- overlooking existing-development credits or catchment rules
- applying a Section 7.12 percentage to the wrong cost base
- treating an EDC figure as automatically equivalent to the levy calculation
A structured review helps identify these assumptions early and makes them easier to update as the project changes.
Keep the cost assessment aligned with the design
A contribution estimate is only as reliable as the documents supporting it. Drawings, schedules and specifications should identify the assessed works, while the report records key assumptions where information is incomplete. Material design changes should be reflected in the estimate, particularly for demolition, external works, services, fitout scope and staging. Keeping the assessment aligned with the current design also helps planners, council and financiers. It shows which project version the developer cost report relates to.
The most reliable approach is to check the contribution method, cost base and project scope together. Updating the assessment when any of these changes reduces the risk of inaccurate budgeting or council queries.
When should a quantity surveyor review the contribution estimate?
Early quantity surveying input can test contribution assumptions against the current design and budget before issues arise later. For Section 7.11, the planning consultant will usually identify the applicable contributions plan and development inputs. For Section 7.12, a quantity surveyor can assess the proposed development cost against statutory and council requirements.
A review is particularly useful when:
- the development is large, staged or has several uses
- the council plan contains location-specific formulas or credits
- the project cost base includes unusual demolition, remediation or infrastructure works
- the consent authority requests a formal cost report or updated assessment
Early review supports contribution allowances for feasibility and council submissions while giving lenders clearer visibility over statutory costs.
Talk to Section 94 about quantity surveyor services and council-facing cost reports for your next NSW development project.
Frequently asked questions
What is Section 94 in NSW?
Section 94 contributions are the legacy term for NSW infrastructure contributions now generally imposed under Sections 7.11 or 7.12. Councils use these contributions to help fund infrastructure associated with development and growth. The applicable mechanism and payment rules depend on the council plan, legislation, ministerial directions and development proposal.
What is the difference between Section 7.11 and Section 7.12?
Section 7.11 generally links contributions to increased infrastructure demand, with calculations determined by the applicable council contributions plan. Section 7.12 is a levy based on the proposed cost of carrying out development, where authorised by the applicable plan. They are alternative mechanisms, so the same development consent cannot ordinarily impose both types of condition.
Is estimated development cost used to calculate a Section 7.12 levy?
Not automatically. NSW Planning states that EDC supports planning pathways, assessment fees and application requirements, but does not affect development levies. Section 7.12 uses the statutory concept of the proposed cost of carrying out development. Because the measures serve different purposes, developers should not reuse an EDC figure without checking the applicable requirements.
How can a developer estimate council contributions before lodging a DA?
Start by identifying the current contributions plan applying to the site and proposed use. For Section 7.11, review the plan’s development units, catchment rules, credits and indexation. For Section 7.12, establish the correct proposed cost of carrying out the development before applying the plan’s levy provisions. Planning and quantity surveying advice can then be incorporated into the feasibility model.