Do I Need A Section 94 Contribution?
23 / 01 / 2020
Section 94 contributions – otherwise known as reports – are not always required for development projects. The only time you’ll need a Section 94 contribution is if your project exceeds an estimated cost of half a million dollars. If this is the case, then a Section 94 contribution is for you. In today’s blog, we’re going to be looking at the reasons you might need a Section 94 contribution and what it entails.
What are section 94 contributions?
Section 94 refers to Section 94 of the Environmental Planning and Assessment Act 1979. The sole purpose of this report is to detail all the costs of any construction project whose estimated cost is $500,000 or more. The report authorises the council to levy contributions for public amenities and services due to the development.
Simply put, if the development costs more than half a million, then the council can request funds (the contributions) for surrounding infrastructure and services that may need to be built/improved as a result of your construction project. This could be anything from community buildings to roads.
Do I need one?
This is a question we get a lot of people asking us and the answer is very simple. If the estimated cost of your project equals to or exceeds $500,000 – then yes, you do need Section 94 contributions. If it’s under $500,000, however, then you won’t need one.
Are they complex to fill out?
It’s mandatory for Section 94 contributions to be filled out by a qualified quantity surveyor. This is so you don’t miss something or accidentally make mistakes. So, not only is enlisting the expertise of an experienced surveyor highly beneficial and will put your mind at ease – but it’s also legally required.
So, you don’t have to worry about their complexity or nuances. All you have to do is provide the relevant information to your quantity surveyor and they’ll combine it with their cost estimations to fill out the form. Using a highly qualified and experienced quantity surveyor like the ones at Section 94 guarantees you a high-quality standard of work.
Once the form is filled out it is then submitted to the local council with several other pieces of information for them to approve and have on file.
What else is included in the contributions scheme?
When Section 94 contributions are submitted, there are several other documents and pieces of information that accompany it. These include work schedules, maps, indexation formulas and any other information that’s relevant to the project.
Why do section 94 contributions exist?
As we mentioned earlier, Section 94 contributions exist as extra funding for councils in case any infrastructural developments need to be made around the area. It effectively allows the council to request money from developers that are working on projects over $500,000. The type of contribution that is required depends on your local council rates as well as the infrastructural project that is being undertaken.
The whole point of the form is so the levy from the council (when required) is delivered correctly. However, there must be a direct correlation between the proposed council development and the funds that are collected. For example, if a large number of new families are moving into the area – then the council may levy for a new public school to be built in the area as it directly impacts the increase in families.
Do you need section 94 contributions completed accurately and efficiently?
Section 94 forms can seem confusing sometimes, but they’re actually very simple once you understand them. Just remember that a qualified and experienced quantity surveyor should handle them. Here at Section 94, our quantity surveyors are just that – qualified, trained and experienced in all facets of Section 94 contributions. They’ll be able to accurately and efficiently complete the necessary forms and make the required estimations for your construction project.
Our experts also offer several other surveying-related services and solutions such as bank prefunding, handling construction budgets and dealing with progress claims. We operate within both the Melbourne and Sydney areas and can offer you quality, high-end service.