Section 7.11 and section 7.12 contributions are local infrastructure charges paid to your council under the Environmental Planning and Assessment Act 1979. A 7.11 contribution is worked out per dwelling or lot from the council’s contributions plan; a 7.12 levy is a percentage of the cost of the works, usually 1%. The Housing and Productivity Contribution (HPC) is a separate state charge that started on 1 October 2023 and applies to most new dwellings and lots in Greater Sydney, the Central Coast, the Lower Hunter and the Illawarra-Shoalhaven. A single project can be up for both a council contribution and the HPC, so we work them into the feasibility before a DA is lodged.
Key takeaways
- Section 7.11 contributions are charged per additional dwelling or lot under a council contributions plan, with a general cap of $20,000 per dwelling or lot ($30,000 in nominated greenfield areas) unless IPART has reviewed the plan.
- Section 7.12 levies are a flat percentage of the estimated cost of works, capped at 1% in most areas, and a council cannot charge both 7.11 and 7.12 on the same development.
- The Housing and Productivity Contribution commenced on 1 October 2023 with base rates of $12,000 per new house lot or dwelling and $10,000 per medium or high density dwelling in Greater Sydney, indexed over time.
- Existing dwellings and lots usually attract a credit, so a knock-down rebuild to a duplex is generally charged on the one net additional dwelling.
- The section 10.7(2) planning certificate lists which contributions plans apply, and the exact figures are set by the consent condition, not by an estimate.
What the three charges actually fund
Section 7.11 (formerly section 94) funds local infrastructure that the council can show is needed because of new development: local roads, drainage, open space, community centres, sports fields. There has to be a nexus between your project and the works in the plan. The growth area plans covering Blacktown’s and Camden’s release precincts are 7.11 plans, and they are the big ones.
Section 7.12 (formerly section 94A) is the simpler alternative used mostly in established suburbs. Council does not have to prove a nexus. It takes a set percentage of the estimated cost of the works. Cumberland, Canterbury-Bankstown, Fairfield and much of the inner Parramatta area rely on 7.12 for small residential jobs.
The Housing and Productivity Contribution is collected by the state, not council, and pays for regional and state infrastructure such as arterial roads, schools, health facilities and transport. It replaced the older Special Infrastructure Contributions for most of the state, though the Western Sydney Growth Areas SIC and the Aerotropolis SIC continue to run under their own arrangements in the North West and South West Growth Areas and around the Western Sydney Airport.
How a section 7.11 contribution is calculated
Every 7.11 plan has a schedule of rates per dwelling type or per lot, and most also give a rate per bedroom or per person for larger housing. The plan then credits the existing use of the land. In plain terms:
- Count the dwellings or lots the development will create.
- Subtract the credit for what is already lawfully on the site (usually one dwelling on one lot).
- Multiply the net additional dwellings or lots by the plan rate for that housing type.
- Index the figure to the quarter in which it is paid, which the consent condition will require.
So a dual occupancy replacing a single house in an established Blacktown suburb is charged on one additional dwelling, not two. A secondary dwelling is treated differently by different councils: some exempt granny flats, some charge a reduced rate, and a few charge the full dwelling rate. That detail sits in the plan itself, so check the plan named on the 10.7(2) certificate rather than assuming.
The state caps 7.11 contributions at $20,000 per dwelling or lot in most of NSW and $30,000 per dwelling or lot in nominated greenfield areas. A council can only charge above the cap where IPART has reviewed the plan, which is why per-lot figures in parts of the North West and South West Growth Areas are well above $30,000.
How a section 7.12 levy is calculated
The 7.12 levy is a percentage of the cost of carrying out the development, and the Minister’s direction sets the ceiling at 1% in most places. Most plans use a stepped scale along these lines, though the exact steps are in each plan:
- Works up to $100,000: nil.
- Works from $100,001 to $200,000: 0.5%.
- Works above $200,000: 1%.
The cost of works is not what your builder quoted. Above a set threshold the council will ask for a cost summary report or a quantity surveyor’s estimate on the council’s form, and the levy is set on that figure.
The Housing and Productivity Contribution in numbers
The HPC applies to development applications and complying development certificates lodged from 1 October 2023 in the four regions listed above. At commencement the base rates were:
| Development type | Greater Sydney | Central Coast, Lower Hunter, Illawarra-Shoalhaven |
|---|---|---|
| Residential subdivision (per new lot) | $12,000 | $8,000 |
| Medium and high density residential (per new dwelling) | $10,000 | $6,000 |
| Commercial (per sqm of gross floor area) | $30 | $30 |
| Industrial (per sqm of gross floor area) | $15 | $15 |
The rates are indexed, so the figure on your consent will be higher than the base rate depending on when it is paid. The HPC, like 7.11, is charged on the net increase in dwellings or lots, and it sits on top of the council contribution rather than replacing it. The state’s Housing and Productivity Contribution page carries the current rates, the ministerial order and the standard condition.
A worked example: a knock-down rebuild to a two dwelling duplex on a single lot in Penrith, outside the growth areas. The HPC is charged on one net additional dwelling at whichever rate the order assigns to that housing type, so a base figure of $10,000 to $12,000 plus indexation (the order, not the council, decides which category a duplex falls into). The council charge is set by the Penrith contributions plan for the release area or the citywide 7.12 levy on the cost of works, whichever applies to that land.
When each contribution has to be paid
The consent condition controls the timing. The usual pattern:
- Council 7.11 and 7.12 contributions: before the construction certificate for building work, or before the subdivision certificate for a subdivision. Where a duplex is later subdivided, most councils split the charge so the subdivision component is paid at subdivision certificate.
- HPC: payment is required under the ministerial order and the standard condition, generally before the first subdivision certificate for subdivision or before the construction certificate for building work. The state issues the payment reference through the NSW Planning Portal.
For a duplex or a small subdivision, budget for full payment at construction certificate stage and add indexation for the gap between consent and payment. The state’s local infrastructure contributions overview explains the framework councils work within.
Where contributions catch people out
- Buying a growth area lot on a cap assumption. Contributions in Marsden Park, Schofields, Box Hill, Austral, Leppington and Oran Park are set by IPART-reviewed plans, not the $30,000 cap. Read the plan before exchange.
- Forgetting the HPC on top of the council charge. Since October 2023, budgets built on the old council-only figure are short by five figures per dwelling in Sydney.
- Assuming the granny flat is free. It depends on the plan. Blacktown DCP 2015 and Blacktown LEP 2015 say nothing about contributions; the Blacktown contributions plan does. Same logic applies to every council.
- Relying on an old 10.7 certificate. Plans are amended and repealed. Order a current section 10.7(2) certificate before the SEE is finalised.
Frequently asked questions
Do I pay section 7.11 contributions on a granny flat?
It depends on the council’s contributions plan. Some plans exempt secondary dwellings, some charge a reduced rate, and some charge the standard dwelling rate. The plan named on the section 10.7(2) certificate is the only reliable source.
Is the Housing and Productivity Contribution paid instead of council contributions?
No. The HPC is a state charge and is paid in addition to any section 7.11 or 7.12 contribution the council imposes. In Greater Sydney a duplex will usually attract both.
Can council charge both 7.11 and 7.12 on the same DA?
No. A consent can carry a 7.11 condition or a 7.12 condition but not both. Councils that run both types of plan apply them to different parts of the LGA or different development types.
Contributions are one of the first things our planners check when preparing a development due diligence report, because they can change the answer on whether a duplex or small subdivision stacks up. If you’d like the applicable plans and the likely HPC identified for a site in Blacktown, Penrith or anywhere in NSW, request a fee proposal and we’ll scope it.