Development Contributions Policy amendment

Proposed change

• Raise the size limit for minor residential units to 70m2 to align with the new granny flats standard and include a project information memorandum (PIM) as a trigger for requiring development contributions.

Rationale

• The current policy provides for a half-charge for minor dwellings smaller than 60m². This reflects a lower demand on Council infrastructure compared to a full-sized house (which pays one full charge).
• Government has brought in new rules for ‘granny flats’ up to 70m².
• We are proposing to align our policy with these new rules for consistency and to avoid confusion for developers.
• We think the half-charge would continue to be a fair and reasonable charge for a small one- to two-bedroom unit up to 70m2.

Proposed change

• Apply a maximum size limit of 70m² to new commercial accommodation units to ensure that the reduced charge is targeted toward smaller hotel or motel rooms as intended, while large short-term accommodation offerings are assessed consistently with their scale and impact.

Rationale

• A 70m² size limit for new commercial accommodation units helps ensure development contributions are applied fairly.
• This change is aimed at preventing large apartments or houses used for short-term stays from being charged at the lower rate intended for smaller hotel or motel rooms.

Proposed change

• Update the definition of a residential unit to be consistent with current practice, that is:

building(s) or part of a building that is used for a residential activity that has all of the following facilities separate from another residential unit:

• kitchen (or kitchenette consisting of a bench top and sink)
• living facilities (e.g. a bedroom and/or living area)
• toilet and bathroom facilities.

Rationale

• This change would make it clearer for homeowners to understand when development contributions apply, and likely reduce inconsistent interpretation and disputes.