Infrastructure Charges

What is an Infrastructure Charges Resolution?

An Infrastructure Charges Resolution is a formal document adopted by Council that sets out the charges developers must pay for Council providing trunk infrastructure in relation to that development. This includes for infrastructure such as roads, water supply, sewerage, stormwater and parks.

These charges apply when someone subdivides land or undertakes development that will place additional demand on Council’s trunk infrastructure networks.

The State Government sets the maximum cap that a Council can levy. However, the maximum capped amount does not cover the full cost to Council of delivering the infrastructure required to facilitate growth. That is, a significant unfunded gap exists between the maximum infrastructure charge a local government can levy and the actual cost to the Council to deliver the infrastructure.

The burden of funding the gap is generally borne by ratepayers or utility users through additional rates and charges and/ or by diverting funds meant for maintaining infrastructure.

Why is Council updating its Charges Resolution?

The Charges Resolution requires updating as the 2019 version:

• Refers to outdated State instruments that are no longer relevant
• Includes charges that are inconsistent with the regulation (e.g. charges for Secondary Dwellings), and
• Has not been updated to reflect cost increases and the new maximum charges (“prescribed amounts”) under the Planning Regulation 2017.

The new Charges Resolution:

• Ensure legal compliance;
• Improve cost recovery for new trunk infrastructure; and
• Reduces the funding burden on ratepayers and utility users.

What are “prescribed amounts” and how do they affect charges?

The “prescribed amounts” are the maximum unit charges that Councils are permitted to levy pursuant to Schedule 16 of the Planning Regulation 2017 (the “regulation’) as amended by the State Government from time to time.

The prescribed amounts reference by the new Charges Resolution will automatically increase (or decrease) in line with amendments to Schedule 16 of the Regulation.

What kinds of development are subject to infrastructure charges?

Charges apply to:

• Reconfiguring a lot (subdivision);
• Material change of use (new land uses and increases in the scale or intensity of existing land uses); and
• Certain types of building work.

 Are there any developments that don’t attract charges?

Yes, the charges do not apply to:

• Development by Council on Council-owned land; and
• Development types that are excluded under section 113(3) of the Planning Act 2016 (e.g. public works conducted by a State Government Department).

What are the new charges for subdividing land?

Where the subject land would be serviced by all of Council’s trunk infrastructure networks, the new charge for each additional lot created (whether for residential use or otherwise) is $36,670.70. This is equivalent to the current “prescribed amount” for a 3 or more-bedroom dwelling house under Schedule 16 of the Planning Regulation 2017.

How are charges calculated for different developments?

Depending on the type of use proposed, charges will be calculated based on:

• The size/scale of the development (e.g. number of bedrooms, proposed floor area);
• The extent to which the development would be serviced by Council’s trunk infrastructure networks;
• The nature of any credits attached to the development site (e.g. owing to the previous use of the land); and
• Indexation using the Producer Price Index (PPI) from the date the charge is originally levied to the date of payment.

What if I already have an existing use on the land?

You may be eligible for a credit. Credits reduce the charges payable and are calculated having regard to:

• The existing lawful use of land
• A previous payment of infrastructure charges
• A previous lawful use of land, and
• Development that may be carried out on the land without the need for a further development permit.

Where credits cannot be established in accordance with the above, “deemed credits” shall no longer apply, as was the case under the superseded 2019 Charges Resolution. Credits cannot exceed the charge for the new development and do not apply to new lots created from boundary realignments or premises in non-residential zones that are not subject to an existing lawful use, a previous lawful use or previous charge payment.

How is the charge split across different infrastructure networks?

Infrastructure charges cover Council’s five trunk infrastructure networks (i.e. water supply, sewerage, roads, stormwater and parks). If your development will not place additional demand on one or more of these networks, your charge will be reduced on a percentage basis, in line with the following proportional split:

For example, if your development is not connected to sewerage infrastructure, your charge would be reduced by 25%.

What are the charges for some common development types?

Can I get a refund?

Sometimes Council will condition an application so that the developer delivers infrastructure Council has planned to deliver (‘trunk infrastructure’). Where this occurs, the cost to the developer of delivering the infrastructure, for example, a road, is offset against the infrastructure charges levied on the developer by Council. This is known as a ‘refund’. Refunds over $100,000 will be staged over multiple years following the completion of trunk infrastructure works.

What if I have to build trunk infrastructure?

If the conditions of a development approval require the provision of trunk infrastructure, the Charges Resolution sets out a method for determining the associated establishment costs, which would in turn inform any calculation of any offset or refund the Developer may be entitled to.

If a development approval requires the construction of non-trunk infrastructure (i.e. infrastructure not eligible for an offset or refund), and the Developer believes it would perform a trunk function, they may apply to Council to have the infrastructure converted to trunk infrastructure. The Charges Resolution includes a set of criteria (“conversion criteria”) that Council must consider when deciding such requests.

Who do I contact for help?

If you’re unsure about how infrastructure charges apply to your development, contact Council’s Development Services team on 1300 362 242 or email info@trc.qld.gov.au.