FAQs

Sutherland Shire’s current contributions framework includes Development Contributions Plan 2016 Section 7.11 Amendment 3 (Edition 4) and Section 7.12 Amendment 5 (Edition 6). Under these current Plans, when developers deliver a net increase in dwellings on a site inside eight town centres, they pay up to $20,000 in contributions for each additional dwelling. In other words, if one home is demolished to build three new homes, contributions are payable for two additional homes. Developers outside these centres typically pay a lower contribution, calculated through a small percentage of overall building costs.  

This approach was based on the housing growth strategy which existed when the plans were developed and approved, under which most new dwellings were forecast to be concentrated in these centres. 

However, this approach has since been superseded by NSW Government planning reforms which are supporting major new housing developments outside of the boundaries of the eight centres.  

These reforms include: 

• The Low and Mid-Rise housing policy, which reduces minimum lot sizes for dual occupancy and multi dwelling housing, and allows for residential flat buildings, up to 800m from ten centres; and 

• Spot rezonings and concurrent State Significant development projects recommended by the Housing Delivery Authority, including projects well outside the boundaries of the eight centres.  

Without a change to the contributions plans, developments supported by these reforms will pay the lower contribution rate, and therefore not make an adequate contribution to local infrastructure to meet the needs of the additional residents they will house.  

The proposed new contributions plan sets an LGA-wide rate for development that results in a net increase of residential lots, dwellings or units. Under the new Plan, studio or one-bedroom dwellings will pay a $16,190 contribution. Two- and three-bedroom dwellings, and new residential lots, will pay a $20,000 contribution. It should be noted that the NSW Government per dwelling contribution cap is $20,000. 

This change ensures all new dwellings make the same contribution to local infrastructure – irrespective of where they are located and in line with current planning controls and systems. 

At present, contributions from additional dwellings are required to be spent in the centre in which they are collected. These centres are Cronulla, Caringbah, Sylvania, Miranda, Gymea, Sutherland-Kirrawee and Engadine. 

This approach is no longer workable, given that any development which delivers additional dwellings will need to pay a per dwelling contribution, even if it outside a centre. It also means that funds are more likely to remain unspent as we wait for new projects to be ready to start in each centre. 

As such, it is proposed to combine all existing funding pools into a single pool and ensure all new contributions are placed into this pool. This approach will help to speed up the delivery of infrastructure, in particular larger regional projects which require larger funding amounts, such as a community facility or leisure centre upgrade.  

Funded infrastructure is specified in the works schedule in the draft 2026 Infrastructure Contributions Plan and includes a range of works across the whole Sutherland Shire, and in centres where there is forecast dwelling growth.

The new draft contributions plan implements a Council resolution from April 2025 to exempt not-for-profit developers who are providing housing for vulnerable residents from paying contributions. 

This means that residential accommodation which is provided on a subsidised basis to vulnerable members of the community, and where the accommodation is provided and managed by a not-for-profit for a minimum of 25 years and meets a recognised community need, will be exempt from paying contributions.  

This is likely to exempt crisis accommodation, along with certain group homes and other specialist accommodation for disabled community members. Existing legislated exemptions for social housing will remain. 

The changes will make it easier for deliver housing needed by vulnerable community members, which is important at a time of rising housing stress.

The schedule outlines infrastructure needs for the next 15 years, with regular reviews to ensure it reflects changing development patterns. 

Infrastructure projects from the draft Sutherland–Kirrawee and Miranda Place Plans are now included. These plans are awaiting NSW Government endorsement to publicly exhibit. Future Place Plans will inform ongoing updates to the works schedule.