Infrastructure Charges: What You Need to Know.

Infrastructure charges play a crucial role in funding and sustaining the development of local communities and regions. In Queensland, Australia, these charges are essential for ensuring that the demands of new developments on infrastructure networks are adequately addressed. Below, we will delve into Queensland's infrastructure charges, exploring what they are, when they need to be paid, and the various development projects they apply to.

What Are Infrastructure Charges?

Infrastructure charges are fees levied by local governments in Queensland to cover the costs associated with providing trunk infrastructure. Trunk infrastructure includes essential facilities such as transportation networks, stormwater systems, parks, land for community facilities, water supply, and wastewater (sewerage) infrastructure. These charges are designed to ensure that the development process contributes to the expansion and maintenance of these critical infrastructure components.

The Role of Local Government Infrastructure Plans (LGIPs)

The decision to impose infrastructure charges hinges on the presence of a Local Government Infrastructure Plan (LGIP) and whether it is determined that a development will place additional demand on the trunk infrastructure network. LGIPs outline the infrastructure needs of a local area and serve as a guide for local governments in making decisions related to infrastructure charges.

When and How Are Infrastructure Charges Levied?

Infrastructure charges are typically levied through an infrastructure charges notice given around the time of a development approval. Local governments adopt an infrastructure charges resolution that outlines the specific charges applicable to different development types within their jurisdiction. It's essential to note that the adopted charge must not exceed the maximum adopted charge set by relevant State legislation and regulations.

Infrastructure Charges Resolutions

Local governments with LGIPs in place are required to adopt infrastructure charges resolutions. These resolutions specify the infrastructure charging amounts for various local government areas and provide for the indexation of these charges. They are available on local government websites and are attached to local planning schemes, although they do not form part of those planning schemes.

Infrastructure charges resolutions can vary from one local government to another, so it's crucial to contact your local government for detailed information about their adopted infrastructure charge resolution.

Infrastructure Agreements

Infrastructure agreements are another mechanism for addressing infrastructure needs in Queensland, especially in cases where local governments do not have an LGIP. These agreements can be used for approved development projects that result in additional demand on existing or anticipated trunk infrastructure.

Infrastructure agreements can be employed in various scenarios, including resolving infrastructure matters not addressed by development approval conditions, facilitating the provision or funding of infrastructure not covered in an LGIP, or when all parties prefer a custom solution.

Which Development Projects Do Infrastructure Charges Apply To?

Infrastructure charges in Queensland are applied to a range of development projects, including:

• Subdivisions (Reconfiguring a Lot): When land is divided into multiple lots for sale or development.

• Material Change of Use: This encompasses changes in land use that generate additional demand on trunk infrastructure networks.

• Building Work: Infrastructure charges may be applicable when constructing new buildings that impact infrastructure demand.

Infrastructure Offset and Refunds

Infrastructure offsets and refunds can be provided in lieu of payment for certain infrastructure charges. These offsets may relate to specific trunk infrastructure items identified in Council's Local Government Infrastructure Plan.

The process for determining infrastructure offsets and refunds depends on the charges resolution applicable to the development approval. For more information on offsets and refunds, refer to the relevant charges resolution and submit a prescribed form to Council.

Incentive Programs

Some Council’s offer incentive programs to encourage specific types of development within a specific time period. Some examples of incentive programs include:

• Deferred Charges Incentive for Build-to-Rent Developments: This program aims to promote the construction of build-to-rent residential accommodations. It offers deferred payment of infrastructure charges for up to five years for eligible developments.

• Incentive Payment for Green and Energy Efficient Buildings: Developers of energy-efficient buildings may receive a financial payment of up to 50% of the infrastructure charges.

• Incentive Payment for Universal Housing Design: Developers who meet accessibility standards may receive incentives equivalent to 33% of the infrastructure charges.

Conclusion

Understanding Queensland's infrastructure charges is essential for developers, local governments, and residents alike. These charges serve as a vital mechanism for funding and maintaining critical infrastructure networks, ensuring sustainable development and community growth. Whether you're planning a new development or seeking information on existing infrastructure charges, it's essential to stay informed about the relevant regulations and resolutions in your local government area.