The NSW Government has introduced reforms to the way in which development costs are to be estimated for the purposes of calculating fees payable for applications and the relevant approval pathways.
The concepts of “capital investment value” and “cost of development” have been utilised in the Environmental Planning and Assessment Regulation 2021 and its predecessor (the Environmental Planning and Assessment Regulation 2000) for many years for the purposes of estimating fees for the lodgement of applications, as well as in other planning instruments to identify certain forms of development as State or regionally significant development.
Both concepts will now be replaced with a new single definition and calculation method for the “estimated development cost” (“EDC”), which is as follows:
“6 Estimated development cost
(1) In this regulation, the estimated development cost, of proposed development, means the estimated cost of carrying out the development, including the following—
(a) the design and erection of a building and associated infrastructure,
(b) the carrying out of a work,
(c) the demolition of a building or work,
(d) fixed or mobile plant and equipment.
(2) The estimated development cost does not include the following—
(a) amounts payable, or the cost of land dedicated or other benefit provided, under a condition imposed under the Act, Division 7.1 or 7.2 or a planning agreement,
(b) costs relating to a part of the development that is the subject of a separate development consent or approval,
(c) land costs, including costs of marketing and selling land,
(d) costs of the ongoing maintenance or use of the development,
(e) GST.”
The Environmental Planning and Assessment Amendment (Estimated Development Cost) Regulation 2023 applies from 4 March 2024. The new definition will apply to all applications made after this date, except where savings and transitional provision apply.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
