What Are Section 7.11 and 7.12 Contributions?
Section 7.11 and 7.12 contributions (formerly Section 94 and 94A) are developer levies charged by councils to fund local infrastructure — roads, parks, community facilities, stormwater — needed to support new development.
Understanding these contributions is critical for development feasibility. They represent a significant hidden cost that many developers underestimate, and they vary dramatically between councils and project types.
**Section 7.11** — Calculated based on the specific infrastructure demands of your development. Charged per dwelling or per lot created.
**Section 7.12** — A flat percentage of the total development cost (typically 1–3%). Usually applies where no specific Section 7.11 plan exists.
Contribution Rates Across Western Sydney Councils (2026)
Current contribution rates vary significantly between councils:
**Liverpool City Council:** • Residential (per additional dwelling): $25,000–$35,000 • Industrial/commercial: 1% of construction cost under Section 7.12 • Growth areas (Austral, Edmondson Park): $40,000–$55,000 per dwelling (higher due to new infrastructure needs)
**Fairfield City Council:** • Residential (per dwelling): $15,000–$25,000 • Generally lower than surrounding LGAs due to established infrastructure
**Cumberland City Council:** • Residential: $20,000–$30,000 per dwelling • Auburn precinct may have higher rates for specific infrastructure items
**Canterbury-Bankstown City Council:** • Residential: $15,000–$35,000 per dwelling • Varies by suburb and proximity to major infrastructure projects • Metro corridor contributions may be higher
**Blacktown City Council:** • Established areas: $15,000–$30,000 per dwelling • Growth centres (Marsden Park, Schofields): $50,000–$70,000+ per dwelling • Growth centre rates include trunk infrastructure for new road networks, schools, and parks
These rates can change annually. Always confirm current rates with your council before finalising feasibility models.
Impact on Development Feasibility
Contributions have a material impact on project economics:
**Example: Duplex development in Liverpool (established suburb)** • Construction cost: $850,000 • Section 7.11 contribution (1 additional dwelling): $30,000 • Contribution as % of build: 3.5%
**Example: 4-unit townhouse in Blacktown (growth area)** • Construction cost: $1,600,000 • Section 7.11 contribution (3 additional dwellings): $150,000–$210,000 • Contribution as % of build: 9.4–13.1%
The difference between an established area duplex and a growth area townhouse can be over $100,000 in contributions alone. This is why experienced developers in Western Sydney factor contributions into their feasibility models from day one.
**Buildana's approach:** Every Buildana feasibility assessment includes confirmed contribution rates from the relevant council. We don't estimate — we confirm. This avoids nasty surprises at Construction Certificate stage when contributions become payable.
Strategies to Manage Contribution Costs
While you can't avoid contributions, you can manage their impact:
**1. Choose established suburbs over growth areas** — Contribution rates in established suburbs are typically 40–60% lower than growth centres because most infrastructure already exists.
**2. Design to minimise additional dwellings** — Contributions are charged per additional dwelling. A KDR (replacing one dwelling with one) attracts no additional contribution. A duplex (one to two) attracts one dwelling's contribution.
**3. Check for exemptions** — Some councils offer reductions for affordable housing, secondary dwellings under 60m² (granny flats), or developments near existing infrastructure.
**4. Negotiate deferred payment** — Some councils allow contribution payments to be deferred or staged, improving cash flow during construction.
**5. Factor contributions into land negotiation** — If you know contributions will be $50,000+, use this in land purchase negotiations.
Buildana includes full contribution analysis in every feasibility study. Contact us to understand the true cost of your development — not just the build cost.
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