2018-09-17 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                           17 SEPTEMBER 2018


With recent amendments to the Planning Act 2016 on 9 May 2018, the Planning Regulation 2017
on 2 July 2018 and Council’s adoption of the LGIP that replaced the former PIP on 8 June 2016,
it is appropriate that Council review and update its charges resolution and processes accordingly
to ensure continued compliance with the legislation as amended.

1.     Review of Current Charges Resolution
Amendments to the legislation have, through the transitional provisions of the successive acts,
generally maintained previous infrastructure charges in accordance with the provision of the
particular act under which they were originally issued. However, this has still introduced
complications in administering infrastructure charges issued under the various adopted Council
charges resolutions and legislation over this time.
Staff review of Council’s current “Charges Resolution” has identified that a number of
amendments should be made to ensure continued compliance with the current Planning Act
2016.
A workshop was held with Councillors on 6 September 2018 where the following main review
items were raised and discussed:
i.     References to the repealed “Sustainable Planning Act 2009” and “State Planning
       Regulatory Provision (adopted charges) 2012” should be updated to reference the current
       “Planning Act 2016” and “Planning Regulation 2017”;
ii.    The State’s annual indexation of the maximum permissible charge rates have not been
       consistent over time nor applied uniformly across all uses.
       To avoid any confusion or potential errors, Council’s schedule of adopted charges should
       therefore be updated to reflect the maximum charge rates permissible being the
       “prescribed amounts” under Schedule 16 of the current Planning Regulation 2017
       amendment dated 2 July 2018 applying for the current 2018-2019 financial year.
iii.   The automatic increase provisions of the legislation has had significant modifications
       implemented over time. This has complicated the indexation of “adopted” infrastructure
       charges depending on when they were issued i.e. prior to or after 4 July 2014 or after 3
       July 2017.
       Section 114 (5) of the current Planning Act 2016 stipulates an automatic increase must not
       be more than the lesser of the following:
       (a)   the difference between —
             (i)    the levied charge; and
             (ii)   the maximum adopted charge that the local government could have levied for
                    the development when the charge is paid;
       (b)   the increase worked out using the PPI, adjusted according to the 3-yearly PPI
             average, for the period —
             (i)    starting on the day the levied charge is levied; and
             (ii)   ending on the day the charge is paid.
       Where the:
           3-yearly PPI average means the PPI adjusted according to the 3-year moving
             average quarterly percentage change between financial quarters; and
           PPI means the producer price index for construction 6427.0 (ABS PPI) index number
             3101 — Road and Bridge construction index for Queensland published by the
             Australian Bureau of Statistics.
       The “automatic increase provision” contained in Council’s charges resolution has remained
       unchanged since its first adoption in 2011. Technically, the current resolution requires 2

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