Development Assessment Services | Sydney Metropolitan Council

Capital Insight was recently engaged by a Sydney Metropolitan Council to assist in the assessment of the impacts that vary the basis on which section 94 levies applied to commercial and mixed use development to potentially address shortfalls in projected infrastructure funding.

The Council required analysis of a cross section of actual development consents to determine the sensitivity of each approved project against a range of percentage of cost based contribution charges to development viability including key benchmarks such as internal rates of return and return on cost.

The analysis revealed the impact of increases or decreases in worker numbers on on-residential development when comparing section 94 and section 94a contribution methodologies. The analysis also provided indicative thresholds for increases in worker numbers for a development class that would equate to the section 94a fixed amount. The analysis provided the Council with a sound and clear basis for its ongoing section 94 levies.