End of development application levies will cost Ballina Shire council $700K

One councillor likened the removal of development levies as “an abusive relation” with the NSW Government and it will result in “reducing the services that we can deliver”.

The State Government’s Compliance Funding Review proposed councils no longer charge compliance levies on development applications.

Proposed changes to compliance fees charged on development applications could result in Ballina council losing $700,000 a year from its budget, according to Ballina council staff.

Councillor Ben Smith likened the removal of the levies as “an abusive relation” with the NSW Government.

According to council documents, the Compliance Levy and Information Services Levy will not be charged on development applications from January 1, 2022, “resulting in the loss of approximately $700,000 in recurrent revenue and the removal of an additional compliance officer from the Workforce Plan”.

The State Government’s Compliance Funding Review proposed councils no longer charge compliance levies on development applications.

The NSW Government said the move aimed to “create a more certain, consistent and transparent system for funding building compliance”.

During the June council meeting, Mr Smith said the State Government requires councils to be financially sound while taking away their income streams.

“It’s funny, with the State Government, it’s a bit like an abusive relation,” he said.

“They said ‘be fit for the future’ while taking money from you.

“It’s frustrating … Stamp Duty is $9.7 billion and an extra billion was forecasted, so they are getting money hand over fist right now, and every opportunity to take a bit more from the council, they do that, which is insane.

“If the government was doing this to the private sector, it would be front page of every newspaper in the country!

“It’s making local government less sustainable, it’s reducing the services that we can deliver, and it’s affecting us quite a bit”

Ballina councillors agreed unanimously to “make representations to the State Government in relation to the removal of the Compliance Levy” in their June meeting.

In May, Lismore councillors expressed outrage at the move by the State Government that they say undermines the council’s ability to do its job.

Proposed changes to compliance levies:

• From July 1, changes to regulation charges will be made to prohibit compliance levies on DAs for all councils.

• The changes include a six-month transition period to allow councils that already charge compliance levies on DAs to continue doing so until December 31.

• From September 1, new compliance cost notice provisions will come into effect for all councils, and a new compliance levy on CDCs will come into effect for all councils.

• January 1, 2022, councils may no longer charge compliance levies on DAs.