Council Levies

In reply to Mr GRIFFITHS (Goyder) (28 July 2016). (Estimates Committee B)

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Justice Reform, Minister for Planning, Minister for Industrial Relations, Minister for Child Protection Reform, Minister for the Public Sector, Minister for Consumer and Business Services, Minister for the City of Adelaide): I have been provided the following advice:

The LGA was aware of the council levies and provided comment on these provisions.

A full cost recovery of the project will be achieved within thirteen years. The cost recovery will commence in year 2 (1 June 2017) as the benefits of the new system begin to be realised.

The annual council levy has a flat fee of $4,000 and is scalable up to $32,000 depending on the level of development activity in each council.

The increased development assessment fees occur in two ways:

A development fee of 40¢ per $1,000 for developments over $250,000, capped at $20,000.

Incremental increase of lodgement fees from year 2, this involves a 2.5 per cent increase p.a. (plus CPI), capped at 10 per cent at year 5 when the system is expected to be fully implemented.