Local Government Act 2002

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197AB Development contributions principles

All persons exercising duties and functions under this subpart must take into account the following principles when preparing a development contributions policy under section 106 or requiring development contributions under section 198:


development contributions should only be required if the effects or cumulative effects of developments will create or have created a requirement for the territorial authority to provide or to have provided new or additional assets or assets of increased capacity:


development contributions should be determined in a manner that is generally consistent with the capacity life of the assets for which they are intended to be used and in a way that avoids over-recovery of costs allocated to development contribution funding:


cost allocations used to establish development contributions should be determined according to, and be proportional to, the persons who will benefit from the assets to be provided (including the community as a whole) as well as those who create the need for those assets:


development contributions must be used—


for or towards the purpose of the activity or the group of activities for which the contributions were required; and


for the benefit of the district or the part of the district that is identified in the development contributions policy in which the development contributions were required:


territorial authorities should make sufficient information available to demonstrate what development contributions are being used for and why they are being used:


development contributions should be predictable and be consistent with the methodology and schedules of the territorial authority’s development contributions policy under sections 106, 201, and 202:


when calculating and requiring development contributions, territorial authorities may group together certain developments by geographic area or categories of land use, provided that—


the grouping is done in a manner that balances practical and administrative efficiencies with considerations of fairness and equity; and


grouping by geographic area avoids grouping across an entire district wherever practical.

Section 197AB: inserted, on 8 August 2014, by section 50 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).