NSW Planning reforms continue – Changes to development cost calculations

A new single methodology for ‘estimated development cost’ (EDC) will replace the methods for ‘estimated cost of development’ and ‘capital investment value’. This will affect the development cost documentation for all DAs lodged on and after 4 March 2024 – and who should prepare it.
For more details, please see a summary below and contact Mecone with any queries.

Key items to note, starting on 4 March are:

· New EDC definition to be used in cost reports for all new applications (i.e. SSI, SSD, RSD, DA. CDC, BASIX certificates).

· Limited savings and transitional provisions apply (e.g. for new modifications to consents which were granted before 4 March).

· EDC will not change fees payable or planning approval pathways for local or regional developments.

· The new EDC definition from section 6 of the EP&A Regulation, means:
The estimated cost of carrying out the development, including the following:
• the design (incl. fees) and erection of a building and associated infrastructure
• the carrying out of a work
• the demolition of a building or work
• fixed or mobile plant and equipment.
But does not include: land costs, operational costs of the development, or GST.

· The new approach gives guidance on who should provide cost estimates for developments, at defined thresholds (<$100,000; $100,000 to $3m, and >$3m)

· Guidance is also given on how to calculate development costs using EDC, including a model cost estimate table to be adopted by councils. Councils are expected to adopt this model estimate table and update their guidance notes accordingly. A standardised form of QS report applies for development over $3m.

📑 For more information published by DPHI, see:

https://www.planning.nsw.gov.au/policy-and-legislation/planning-reforms/estimated-development-costhttps://lnkd.in/gdd9grSV
https://lnkd.in/gVzKeWvF