Funding developer contributions and infrastructure charges

On most small and medium developments, the infrastructure bill arrives at the worst possible moment. The build is finished or nearly finished. Buyers have signed. The construction lender has drawn its last dollar. And before the council or certifier will release the certificate that lets titles issue, you must pay local contributions, state contributions, and a stack of smaller fees and bonds.

Without that payment, nothing settles, and without settlements there is no cash. This page explains how contributions and charges work in New South Wales, Victoria and Queensland, when they typically fall due, and how a short-term private loan secured on completed property you already own can pay them so the project can finish.

What are developer contributions?

They are payments that make new development share the cost of the infrastructure it relies on: roads, drainage, parks, community facilities and, at state level, schools, hospitals and transport. They can be paid in money, land or works. They’re set out in your development consent or permit, and they usually have to be paid before a specific certificate or approval is issued.

How do contributions work in New South Wales?

There are two layers.

Local contributions. The NSW Government describes section 7.11 contributions as charged where there is a demonstrated link between the development and the infrastructure being funded. Councils prepare contributions plans that usually set an amount per dwelling or per square metre. A section 7.12 levy is an alternative, calculated on the estimated cost of the development and capped in most areas. A planning agreement is a negotiated arrangement between a developer and a planning authority to deliver infrastructure.

Timing is set by the conditions of consent. Many councils require payment before the first construction certificate. Some allow deferral: Cumberland City Council, for example, has resolved to let eligible developments defer payment to before the first occupation certificate where the first construction certificate is lodged between 1 July 2026 and 30 June 2027. Cumberland notes that amounts are indexed to CPI, so confirm the figure before you lodge.

The Housing and Productivity Contribution (HPC). This state contribution funds regional and state infrastructure and is separate from local contributions. It applies to new residential, commercial and industrial development in Greater Sydney, the Illawarra-Shoalhaven, the Lower Hunter and Greater Newcastle, and the Central Coast, with the earliest ministerial order covering applications lodged from 1 October 2023. From 1 July 2026, the Western Sydney Growth Areas and Aerotropolis special infrastructure contributions moved into the HPC scheme. For residential subdivision, the standard consent condition requires payment before the first subdivision certificate, or stage by stage if paid in instalments, and the amount is adjusted at the time of payment.

How do contributions work in Victoria?

Victoria has several mechanisms, according to Planning Victoria:

• Development contributions plans (DCPs), applied through the Development Contributions Plan Overlay. They can include a development infrastructure levy (uncapped, indexed each 1 July) and a community infrastructure levy (capped by legislation; the maximum is $1,590 per dwelling for 2026-27).
• Infrastructure contributions plans (ICPs), applied through the Infrastructure Contributions Overlay. These currently apply in metropolitan greenfield growth areas, and Planning Victoria says the system will begin collecting in Train and Tram Zone Activity Centres and the SRL East planning area in 2027.
• The Growth Areas Infrastructure Contribution (GAIC), which applies to growth area land zoned for urban use in Casey, Cardinia, Hume, Melton, Mitchell, Whittlesea and Wyndham. The State Revenue Office collects money payments.
• Public open space contributions under section 18 of the Subdivision Act 1988.

Timing varies by plan. The City of Casey, for instance, says a development contribution must be paid not more than 21 days before the statement of compliance is issued.

How do infrastructure charges work in Queensland?

Under the Planning Act 2016, councils adopt an infrastructure charges resolution and levy charges for trunk networks: water, wastewater, stormwater, transport, and parks and community land. Toowoomba Regional Council explains when charges are payable:

• Reconfiguring a lot: once the council approves the plan of subdivision;
• Material change of use: once the use starts;
• Privately certified building work: once the certificate of classification is issued.

Deferral is only possible through an infrastructure agreement at the council’s discretion, and the council warns that delaying payment of a charges notice can mean the amount rises with indexation, up to the cap in its resolution.

How does contributions funding work?

Step	What happens
1. List every charge due before titles	Local and state contributions, bonds, plan sealing, water and sewer authority charges
2. Identify completed property with equity	Finished stock, an investment property, your premises or home
3. Enquire	Property, what’s owing, the charges, the certificate date and the sales schedule
4. Letter of Offer	The approved figure, term, fees and how interest is handled
5. Settle and pay the council or state	Get receipts for the certifier
6. Certificate and titles issue	Lots or units settle
7. Repay	From settlements, or a residual stock refinance

We fund against completed property you already own. We don’t lend on a project under construction or make progress draws. Our comparison of construction loans and property-secured developer funding shows how the two can sit side by side.

Which structure fits?

Security you own	Structure	Notes
Debt-free completed stock or investment property	Private first mortgage, 1 to 24 months	Generally the keenest pricing
Completed property with a bank loan	Second mortgage or caveat	Bank loan stays; caveat can become a registered second
Several properties with partial equity	Security over two or more titles	Spreads the requirement

A second mortgage or caveat ranks behind the existing lender and generally costs more than a first mortgage.

Other ways to pay the contribution, side by side

Option	Works when	Drawback
Construction lender increases the facility	Lender has headroom and agrees	Often maxed out at this stage
Council or state deferral	Policy allows it for your project	Not always available; indexation continues
Developer’s own cash	You have it	Drains reserves for the next project
Joint venture partner contribution	Partner has funds	Changes the profit share; see joint venture contributions
Private loan against completed property	You own equity elsewhere	Short term; needs settlements to repay

Who does this suit?

It suits:

• developers with pre-sold lots or units waiting on titles;
• builders-developers whose construction facility is fully drawn;
• small developers doing duplexes, townhouses and small subdivisions;
• developers who own completed stock or investment property.

It doesn’t suit:

• projects without pre-sales or a realistic sell-down plan;
• developers who own no completed property to offer;
• anyone hoping to fund construction itself, which is outside what we lend for.

When is borrowing for contributions the wrong move?

• Deferral is available. If your council or the state offers deferral to a later certificate, take it, as long as indexation doesn’t outweigh the saving.
• The construction lender will fund it. If the facility includes contributions and has room, it’s usually cheaper.
• Sales aren’t secured. Paying contributions to issue titles on unsold stock adds holding cost; plan the sell-down first.
• The figure isn’t final. Get the indexed amount confirmed before you borrow.

What it costs (without the guesswork)

Each loan is priced on its security, LVR, term and exit; our aim is the sharpest price your project supports. Expect interest (prepaid, capitalised or monthly), an assessment fee that varies per loan and is shown in the Letter of Offer, and legal, registration and discharge costs. There’s no formal valuation required, which keeps third-party delays away from your certificate date.

Illustrative example: titles held up by contributions

Illustrative: a Toowoomba developer finishes an eight-lot reconfiguration. Seven lots are pre-sold. Before the council approves the plan of subdivision and titles can issue, the developer must pay $260k in infrastructure charges plus $40k in other fees. The construction lender won’t increase its limit. The developer owns a completed duplex worth about $900k with no loan. At an illustrative 60% LVR band, the duplex supports a first mortgage of about $540k.

Item	Amount
Private first mortgage over the duplex	$330,000
Less assessment fee, legal and registration costs	$(10,000)
Less illustrative allowance for 6 months’ capitalised interest	$(20,000)
Paid to council and authorities	$(300,000)

Titles issue, and the first three lot settlements repay the private loan in full. All numbers here are rounded examples, not an offer.

Key terms at a glance

• Construction certificate (NSW): the approval to start building work; many councils require 7.11 or 7.12 contributions before it issues.
• Subdivision certificate (NSW): the certificate that lets a plan of subdivision be registered and titles created.
• Statement of compliance (Vic): confirms a subdivision’s permit conditions are met so titles can issue.
• Plan of subdivision approval (Qld): the council’s endorsement that triggers infrastructure charges on reconfiguring a lot.
• Indexation: the regular adjustment that lifts a contribution’s amount over time, which is why the figure on the day of payment matters.
• Infrastructure agreement: a negotiated arrangement with a Queensland council, which can include deferral or works in kind.

Documents you’ll need

• The development consent or permit and its contributions conditions
• The council’s or state’s notice of the amount and due date
• Sales contracts and the settlement schedule
• Construction lender’s statement, if any
• Title details and loan statements for the completed property offered
• Company or trust details and photo ID for every borrower, director and security owner

How fast can contributions be funded?

Loans up to $5m can be possible within 24–48 hours once documents are in. Before approval stages, earlier project costs are covered on our pre-construction costs page. If unsold stock remains after titles issue, see residual stock loans, and if you’re waiting on a lot or house sale to repay, see bridging until a property sells and funding a value-add before sale. Land tax often lands in the same months; see paying land tax bills. Developers on the Darling Downs can read about private lending in Toowoomba.

Certificate waiting on contributions? Send us the conditions and your completed property and we’ll tell you what can be paid and when.

Titles held up by contributions? See if you qualify

Enquiring doesn’t involve a credit check, and your project isn’t sent to a stack of lenders. A specialist who works with developers reviews it. fundU, our lending partner, lends directly against completed property.

Give us the exact charges, the certificate you’re waiting on, the sales position and what’s owing on the property you’re offering. Accurate facts up front are what get you a dependable answer quickly. Begin your enquiry.