From 1 January 2020, local governments are required to report on certain aspects of their infrastructure programs, including the amount of infrastructure charges levied and collected annually, how those funds are being spent and the value of offsets and refunds provided. The changes were introduced as part of amendments to the Planning Regulation 2017, which were passed towards the end of last year.
Local governments were already required to keep, and have available for inspection and purchase, an infrastructure charges register (register). The new requirements are aimed at improving transparency through better maintenance of the register, increasing the scope of information that must be published and ensuring the register is freely available on council’s websites. It seems that part of the legislative aim was to better inform the community about the development industry’s contributions to infrastructure.
The amendments apply to all local governments that have a Local Government Infrastructure Plan (LGIP).
Making the registers freely available
From 1 January 2020, local governments must publish their infrastructure charges registers on their websites. Previously, a charge could have applied for accessing the register, and there was no requirement for it to be published - it simply had to be available for inspection.
The change means that the following, update to date information must now be freely available on a council’s website:
- the amount of each charge levied by the local government;
- how the charge was worked out;
- whether an automatic increase provision applies and how the increases are worked out;
- whether the charge has been paid, and when;
- the amount of any unpaid charge;
- details of any offset or refund given;
- if infrastructure is to be provided instead of paying the charge - details of any infrastructure still to be provided;
- if the charge was levied as a result of a development approval - the approval reference number and the day the approval will lapse; and
- the real property description of the premises to which the charge applies.
The register must also include the following additional information for each infrastructure charge levied on or after 1 January 2020:
- if the charge was levied as a result of a development approval, the day of approval;
- if the levied charge is the subject of an infrastructure charges notice, the reference number and date of the ICN;
- if the levied charge is the subject of an infrastructure agreement, the reference number and day the agreement was entered into; and
- the suburb or locality in which the subject premises are situated.
Strangely, it seems the requirement to include information about whether the levied charge is the subject to an infrastructure agreement will now only apply with respect to charges levied after 1 January 2020. It has dropped out of the general requirements for an infrastructure charges register. The delivery of trunk infrastructure pursuant to an infrastructure agreement is covered by the new “trunk infrastructure information” to be provided, discussed further below.
Each council must update its online infrastructure charges registers monthly from January 2020.
New infrastructure charges information
One of the key changes underpinning a move to greater transparency is the expanded requirement to report on infrastructure charges levied, collected and spent by local governments.
The “infrastructure charges information” that must now be included in the registrar includes:
- the charges that may be levied during the current financial year and the next three financial years;
- a forecast of future spending by the local government on trunk infrastructure (again, for the current financial year and the next three financial years); and
- for the previous financial year:
- the total amount of charges levied;
- the total amount of charges paid;
- the total amount of offsets and refunds given; and
- the total amount of levied charges spent by the local government on providing trunk infrastructure, as well as the total amount of levied charges that were not spent by the local government.
This “infrastructure charges information” must be updated at least annually, before 1 December each year.
New trunk infrastructure information
Local governments are also now required to include “trunk infrastructure information” in their registers. That information must include the following details about trunk infrastructure provided by the local government, or under an infrastructure agreement or condition of a development approval:
- a description of the trunk infrastructure;
- whether the trunk infrastructure is included in the local government’s LGIP and, if it is, the relevant LGIP reference number;
- the trunk infrastructure network that the trunk infrastructure is associated with;
- whether the trunk infrastructure was provided by the local government, or under an infrastructure agreement or condition of a development approval (and, if so, the development approval number);
- the cost of providing the trunk infrastructure; and
- the suburb or other locality in which the trunk infrastructure is situated.
Local governments with estimated infrastructure charges revenue or forecast future spending on trunk infrastructure of more than $20 million will be required to provide trunk infrastructure information on its register on a quarterly basis.
Local governments with estimated infrastructure charges revenue or forecast future spending on trunk infrastructure of less than $20 million will be required to provide trunk infrastructure information on its register when it publishes its annual report each year.
Additional requirements for the register
Infrastructure charges registers must be searchable, and the results of any search must be downloadable. The register must also state the date it was last updated.
LGIP information
The requirement for local governments to keep “each explanatory statement, report, study, supporting material or document used” in the preparation of a local planning instrument of LGIP, as well as “each document mentioned in the LGIP”, available for inspection and purchase has been replaced with a requirement to keep the following documents prepared or used in relation to the making, amendment of review of the LGIP available for inspection or purchase:
- schedule of works model;
- LGIP review checklist;
- the appointed reviewer statement; and
- a study or report.
The terms “appointed reviewer statement”, ‘LGIP review checklist” and “Schedule of works model” are defined by reference to the Minister’s rules. Of particular note is the “Schedule of works model”, which is a key document underpinning the LGIP, and includes:
- a cost schedule summary which calculates and summarises trunk infrastructure costs, projected demand and the infrastructure servicing costs (including cost per demand unit) for each catchment of each trunk network;
- cash flow projections which reflect the expenditure on future trunk infrastructure and projected revenue from infrastructure charges; and
- asset allocation information, which details the service catchment for each trunk infrastructure item.
What these changes mean for local government, developers and the community?
An increase in the amount of freely available information on infrastructure charges and spending should fuel greater confidence in the planning system. It will highlight the role councils and developers alike have in funding and providing trunk infrastructure. It should also increase transparency and accountability at all levels and help to deliver consistent outcomes across a local government area.
For more information or to discuss this topic, contact a member of our Planning team.