Spend a set proportion of developer contributions each year.
Councils are required to spend a proportion of local development contributions each year in accordance with the Order. This is to fund local infrastructure such as roads, parks and community facilities delivered alongside new housing. The change responds to $4.6 billion in unspent contributions currently held by councils.
This part of the Statement of Expectations Order 2026 sets a new expectation that councils actually spend the money they collect from developers, rather than let it sit unused. When a council approves development, it often collects 'local development contributions' — money paid by developers to help fund the public infrastructure (roads, parks, community facilities) that new housing creates demand for. The Order now expects councils to spend a proportion of these contributions each year so that infrastructure is delivered in step with housing, instead of lagging behind it.
All NSW councils that hold local development contributions. The Order operates as the Minister's expectations of council planning performance, not as a hard statutory quota in the source text.
It applies on an ongoing annual basis to councils holding local development contributions. It came into effect on 1 July 2026 as part of the Statement of Expectations Order 2026.
The expectation forms part of the Statement of Expectations Order made under section 9.6(1)(b) of the Environmental Planning and Assessment Act 1979, and sits alongside the Order's expectations on development assessment timeframes, planning proposals and strategic planning. Failure to meet expectations can ultimately lead to a Performance Improvement Order (Minister for Local Government) or appointment of a Planning Administrator (Minister for Planning and Public Spaces).
Councils are required to spend a proportion of local development contributions each year in accordance with the Order.
The spending must fund local infrastructure such as roads, parks and community facilities, delivered alongside new housing to support growing communities.
The expectation responds to unspent contributions delaying infrastructure needed to support new housing, and seeks a more consistent approach to spending funds.
Kiama, like every NSW council, holds local development contributions and is expected to spend a proportion of them each year rather than accumulating balances. For a small coastal LGA this means Kiama should demonstrate it is actively directing developer contributions into roads, parks and community facilities that support new housing, and be prepared to explain any large unspent balances. The source does not set a specific percentage or dollar threshold, so the exact 'proportion' would need to be read from the Order itself.
“Councils are required to spend a proportion of local development contributions each year in accordance with the Order.”
“This will fund local infrastructure such as roads, parks and community facilities to be delivered alongside new housing and support growing communities.”
“Unspent development contributions can delay the delivery of infrastructure needed to support new housing.”
“These changes respond to the $4.6 billion of unspent contributions currently held by councils and require a more consistent approach to spending funds.”
Reproduced from the NSW Department of Planning, Housing and Infrastructure (planning.nsw.gov.au), © State of New South Wales, under Creative Commons Attribution 4.0. Text extraction may introduce minor formatting artefacts — rely on the official source for anything decision-critical.
This is an unofficial reproduction provided for convenience. It is not the official version of the legislation. For the official, in-force version, see legislation.nsw.gov.au.