2014-08-19 Planning & Organisation Committee Agenda - Pages 1-101

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                 19 AUGUST 2014


Due to the transitional provisions of the Act, Council has some time to amend its current Adopted
Infrastructure Charges Resolution and Priority Infrastructure Plan to comply with the legislative
amendments. However, the Act overrides any inconsistencies that may now exist regarding
infrastructure charges issued from 4 July 2014.

The planning and charging framework for trunk infrastructure has primarily maintained the current
“capped” adopted charges philosophy, but has brought about some substantial changes in
relation to the definition of trunk infrastructure, valuing of infrastructure, providing offsets and
refunds for constructed infrastructure, converting non-trunk to trunk infrastructure and calculation
of the permissible maximum charge. Many of these items are also subject to compliance with
new Statutory Guidelines.

The major changes, impacts and subsequent actions required to be undertaken by Council to
satisfy the amended legislation is provided as follows:

1.   Continuation of Capped Infrastructure Charges Regime

The existing State Planning Regulatory Provision (adopted charges) dated 1 July 2012 (SPRP),
will continue to be the SPRP (adopted charges) instrument under the transitional provisions of
the amended Act. However, while the current SPRP sets the maximum amount used for
calculating an adopted infrastructure charge this has remained basically unchanged, the
legislative amendments have now stipulated that the permissible maximum charge may only be
issued for additional demand caused by the development.

In working out additional demand, the legislation now specifically excludes an existing lawful use
that is taking place on a premise. It also excludes any use that was lawful but is no longer taking
place and has no time limit as to when this use previously existed or whether any previous
infrastructure contributions were ever made. This consideration was previously at Council’s
discretion which enabled some indexation to occur. This legislative change means that for
infrastructure charges issued from 4 July 2014, indexation of the charge is now solely limited to
the Ministers future decision. It also means that a credit for a previous use must be included even
if no previous contributions were made.

For example, under Council’s resolution, the adopted infrastructure charge applicable for a 2 x 3
bedroom duplex for a development approval issued up to 3 July 2014 would be $29,875 at CPI
March 2014 and subject to indexation until paid. In contrast, approvals issued from 4 July 2014
onwards, the maximum infrastructure charge permitted reverts back to the July 2011 unindexed
amount of $28,000 and is only subject to indexation to the payment date if decided by the
Minister.

2.   PIP to LGIP

The infrastructure planning instrument required to form part of Council’s planning scheme has
changed from a Priority Infrastructure Plan (PIP) to a Local Government Infrastructure Plan
(LGIP). There is no immediate requirement for a Council to prepare an LGIP, but under the
transitional provisions of the Act, this document is required to be in place by 1 July 2016.

A LGIP’s relevance to Council infrastructure conditioning powers for development approvals
remains unchanged as for a PIP. However, changes have been introduced in relation to the
contents of a LGIP relating to trunk infrastructure and in determining its value.

Under the transitional provisions of the Act, Council’s current PIP becomes a LGIP. Although the
day the PIP was included in the planning scheme determines when the LGIP is required to be
reviewed (i.e. every 5 years), an amendment must still be made to it by 1 July 2016 to fully
comply with the new LGIP requirements under the Ministerial guideline under the prescribed
regulation. Failure to do so will limit Council’s infrastructure conditioning and charging powers.

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