We live in a world where most of us are juggling a lot. We rely on others to shine a light on issues that matter, especially the ones buried in council reports or tangled in planning jargon.
For anyone trying to raise these issues, the first step is making sense of them. The next is explaining them clearly enough that people without a law or planning degree can understand why they matter.
This is one of those issues.
In February 2023, Kiama Council issued a draft development consent for 15 Golden Valley Road, Jamberoo. ( Golden Valley Draft Consent Feb 2023.) That consent included a condition requiring the developer to pay $1 million under Section 7.11 of the Environmental Planning and Assessment Act.
That figure was based on Council’s adopted Section 94 Contribution Plans, also known as 7.11 plans. These plans require developers to contribute to local infrastructure that supports growth, in addition to the infrastructure built within the subdivision.
Later that year, Council repealed its 7.11 plans. The development was still before the Land and Environment Court. See previous post
Because the 7.11 plans no longer existed, the Court applied a flat Section 7.12 rate of just over $30,000.
Section 7.11 contributions are calculated per new lot and paid by developers at the subdivision stage. In contrast, Section 7.12 applies a flat percentage to individual development applications, which means the cost is passed on to future homeowners when they lodge a DA to build.
As a result of the switch, the community lost around $970,000 in developer contributions that would have been collected upfront to support local infrastructure. While some funds may later be collected from home builders under Section 7.12, this shift places the burden on individuals and leaves the community with a major funding gap.
Kiama’s growth target is 900 new dwellings over the next five years. If each lot contributed $20,000 under a new 7.11 plan, that could generate $18 million for community infrastructure. Under the current 7.12 rate, the return is closer to $6.75 million.
The Mayor has committed to a formal investigation into how this happened. That is a good step. But transparency is not a one-time announcement. It requires consistent, honest communication.
In the next post, we will look at the December 2024 Council report admitting overcharges under Section 7.11, and how those errors were handled.
Disclaimer: I am not a developer, a town planner, or a property lawyer. My blog posts are written in good faith and based on publicly available documents, council records, and conversations with professionals who work in planning, development, and legal fields. Every effort is made to ensure accuracy and clarity. These posts are offered to support greater public understanding of complex issues that affect our community.
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