Developers could be allowed to complete construction before paying contributions towards local roads, parks and community facilities under a new election promise from the Minns Government.
On 6 November 2026, the NSW Government announced that, if re-elected, it would permanently defer local infrastructure contributions from the Construction Certificate stage to the Occupation Certificate stage.
Local Government NSW (LGNSW), the peak body for local councils, warns the proposal could leave communities short-changed and ratepayers carrying the financial risk.
The Government argues this will improve developers’ cash flow, encourage housing construction and reduce upfront costs.
At a glance
- If re-elected, the Minns Government would permanently defer local infrastructure contributions from the Construction Certificate stage to the Occupation Certificate stage.
- The Government says this will improve developers’ cash flow, encourage housing construction and reduce upfront costs.
- LGNSW warns councils could have to fund infrastructure before receiving the contributions, and struggled to recover unpaid contributions under similar COVID-19 arrangements.
- Lane Cove Council held $29.815 million in unspent developer contributions on 30 June 2025, with $21.6 million attributable to St Leonards South.
What are developer contributions?
Developer contributions help fund infrastructure required to accommodate population growth. The money is used by councils to fund works relating to drainage, roads, traffic and parking, and open spaces (such as parks and sporting fields).
Set out below is Lane Cove Council’s current development contributions across the LGA (except for St Leonards South) for 2026/27. Under the election promise, developers would pay them at completion rather than before construction starts.
| Description | Unit | Amount |
|---|---|---|
| Residential development | per person | $13,611.94 |
| Residential development | 1 bedroom apartment | $16,334.34 |
| Residential development | 2 bedroom apartment | $25,862.69 |
| Residential development | 3 bedroom apartment | $32,668.67 |
| Retail/commercial parking – Lane Cove West | per parking space | $29,234.21 |
| Retail/commercial parking – Lane Cove Centre | per parking space | $31,971.03 |
| Retail/commercial development (GFA) | per m² | $171.68 |
| Industrial development (GFA) | per m² | $55.98 |
Deferring payment could mean councils must fund infrastructure before receiving the contributions intended to pay for it.
Not the first time deferment has happened
Temporary arrangements like this election pledge were introduced during COVID-19 to stimulate construction.
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LGNSW says councils struggled to recover unpaid contributions under those arrangements, resulting in extra administrative costs and potential legal action.
Developers could go bankrupt before paying the contribution fees, or Occupation Certificates could be issued before the contribution is paid. The Building Commissioner acted against a certifier in 2024 for failing to ensure a contribution fund had been paid before the Occupation Certificate was issued.
What happens if a developer goes bankrupt?
Developer contributions are generally imposed as conditions of development consent.
If a developer goes bankrupt and the property changes hands before an Occupation Certificate is issued, the outstanding contribution condition still needs to be satisfied.
A purchaser taking over the development would be required to pay contributions that the original developer failed to pay. This would no doubt mean that a council would not receive the development contribution money for a considerable period; however, they would have had to start planning and implementing the infrastructure supporting the development.
Councils accused of sitting on billions
The NSW Government says councils collectively hold more than $4.6 billion in developer contributions and proposes unlocking $900 million collected under repealed contributions plans.
It has also threatened to intervene where councils unreasonably delay spending.
LGNSW President Mayor Darcy Byrne described the proposal as a “gift to developers at the expense of communities”.
LGNSW says councils were not consulted and warns that redirecting contributions could trigger legal challenges.
Instead, it wants the Government to adopt its proposed $5 billion interest-free infrastructure loan scheme.
The Government says it will work with councils to manage financial impacts.
What about Lane Cove’s contributions?
Lane Cove Council’s 2024–25 Annual Report reveals it held $29.815 million in unspent developer contributions on 30 June 2025, including $8.156 million from planning agreements.
Of the $21.659 million held under Section 7.11 contributions plans, $21.6 million was attributable to St Leonards South, leaving a net balance of just $59,000 under the LGA-wide plan. St Leonards South is where most building work is being undertaken in the Lane Cove Council area and all contributions raised from the St Leonards South developers must be used in that area to upgrade infrastructure due to the number of new units.
Lane Cove is not one of the councils that has not spent their development contributions. The Galuwa Recreation Centre was funded in part by developer contributions.
Lane Cove Mayor Merri Southwood told ITC that a delay in receiving development contributions would create issues with planning and implementing infrastructure. It will also create uncertainty when budgeting for infrastructure work.
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