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Fees for development applications set to rise under new South Australian planning code

Fees to lodge a development application will rise under SA’s new planning code. But the State Government says a small rise will result in a much more efficient system.

SA's new planning laws coming in 2020

South Australians lodging development applications will be slugged with an additional $60 fee under changes to the state’s planning and design code.

The cost to lodge a DA to build an average home will now rise from about $1130 to about $1190.

Planning Minister Stephen Knoll said the increase was designed to recover the actual cost of processing development applications and would replace a system currently subsidised by taxpayers.

Infrastructure Minister Stephan Knoll. (AAP Image/David Mariuz) NO ARCHIVING
Infrastructure Minister Stephan Knoll. (AAP Image/David Mariuz) NO ARCHIVING

Planning Minister Stephan Knoll said the new fee system would prevent developers and the planning sector being propped up by taxpayers.

“The new fee structure means we will be moving to a cost recovery model, so the developer or applicant pays the actual fee, rather than it being cross subsidised by taxpayers,” Mr Knoll said.

“Even with these modest increases, we are still able to keep fees for new homes lower than

almost all other jurisdictions in the country.”

He said it would help speed up the assessment of development applications and make the system more efficient.

Fees on an average home range from $3500 in Victoria to $1800 in Western Australia.

Property Council SA Executive Director Daniel Gannon. (AAP Image/Sam Wundke)
Property Council SA Executive Director Daniel Gannon. (AAP Image/Sam Wundke)

But Property Council SA executive director Daniel Gannon said some developers would be up for an extra 30 per cent in fees, which would push up house prices.

“Based on what we’ve seen, it is possible the new structure could place upward pressure on the cost of development and so the cost of homes for South Australians,” Mr Gannon said.

Opposition local government spokesman Tony Piccolo said the increase would “hurt home buyers and the construction sector at the worst possible time”.

“We should be doing everything we can to support investment in building new homes to help create jobs – not slapping new home builders with higher taxes.” Mr Piccolo said.

However, Mr Knoll countered that he was following through with the system designed by the former Labor government.

caleb.bond@news.com.au

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Original URL: https://www.adelaidenow.com.au/messenger/fees-for-development-applications-set-to-rise-under-new-south-australian-planning-code/news-story/6c086321d18cde0ec52191a388a6e1b3