Infrastructure charges are an essential part of the development process and are levied on approved developments to cover additional demand on trunk infrastructure that arises because of the development. Infrastructure charges assist Council to pay for the establishment of trunk infrastructure, but are not used for maintenance or operational purposes.
Trunk infrastructure refers to essential infrastructure items that cater to the needs of multiple users and the public. The main categories of trunk infrastructure include:
For detailed information on trunk infrastructure, refer to Part 4 of the Townsville City Plan.
Infrastructure charges can be levied on any type of development that results in an increase in demand on essential infrastructure items. Infrastructure charges are often applied to the following types of development applications:
Council’s infrastructure charge rates are reviewed on an annual basis and a new Charges Resolution is adopted each year. The Infrastructure Charges Resolution provides a base charge rate for most development types based on the anticipated cost to service the increased demand. The State Government sets statutory caps which are factored into the charge rates.
Infrastructure charges are calculated considering several factors such as:
The charge for each development varies depending on its specific circumstances. It is recommended to contact Council for a fee-free infrastructure charge estimate before engaging in any development activity.
For more information on how infrastructure charges are levied, view Council’s Charges Resolutions.
The Planning Act 2016 mandates that a charge credit is applicable if there is existing lawful development on the subject site. The credit is applied to the charge calculation so only additional demand generated by new development incurs Infrastructure Charges. The calculation of credits is based on the Charges Resolution and, in certain cases, Council may ask the developer to provide evidence of historic approval information to accurately calculate the applicable credits. If the existing lawful development has a higher charge than the proposed new development, no charge will be issued. Council will not refund if there is a difference between credit and demand, however, the credit remains over the premises for future use.
An infrastructure charge notice outlines the timing for the payment of infrastructure charges. The Planning Act 2016 provides the timing for payment of each development type, as follows:
When a development or building approval is obtained, infrastructure charges are attached to the land and payable by the landowner. If the property is sold while infrastructure charges are outstanding, the new landowner will be responsible for paying the charges.
As part of the due diligence process when purchasing land, Council strongly recommends confirming there are no outstanding infrastructure charges associated with the land. You can confirm this by requesting a planning certificate from Council.
Infrastructure charges are subject to indexation inflation for any delay in payment. This means that if charges are paid after development approval is initially provided, an added cost will be incorporated into the Infrastructure Charge Invoice to account for inflation.
Some developments may not require a development approval from council services (Accepted Development), however, may still be subject to infrastructure charges triggered by the development permit for Building works. Any development that increases the demand on trunk infrastructure will incur a charge. An Infrastructure Charges Notice will be issued by Council when a copy of the Building Approval is received.
For further information regarding infrastructure charges please contact us to discuss.
