NSW Section 7.11 Development Contributions for Granny Flats 2026
Yes: many NSW lots still attract a section 7.11 granny flat levy when your council’s contributions plan captures secondary dwellings. The levy (formerly Section 94) helps fund roads, drainage and community infrastructure. It isn’t a “builder fee”, and it isn’t optional just because you’re on CDC.
Legislation: Environmental Planning and Assessment Act 1979 (NSW). Broader fee context: NSW granny flat cost guide.
When the levy applies
Councils adopt local contributions plans listing which development types pay and at what rate per square metre or per dwelling. A 60 m² secondary dwelling on a complying development site can still attract contributions if the plan captures that use (NSW development contributions policy).
Don’t assume “CDC means no council money”. CDC skips a full DA assessment path. It doesn’t automatically wipe infrastructure levies. Your certifier or council duty planner should quote the figure when you lodge.
Typical cost range
Levies vary enormously by LGA: from $0 in some rural areas to $15,000–$40,000+ in growth corridors. Western Sydney growth areas are where owners get the biggest shock. If your neighbour in a different suburb paid nothing, that doesn’t tell you anything about your plan.
So include contributions in the preliminaries phase of our cost calculator before you lock finance. Banks care about all-in cost, not the pretty shell price. Don’t treat the levy as a “council will tell us later” surprise.
Ask the duty planner or your certifier for the contributions schedule extract that matches your lot. If they can’t point to a page, you’re guessing.
Section 7.12 vs 7.11
Section 7.12 (formerly Section 94A) is a percentage levy on construction cost in some areas. Ask council which mechanism applies. Most homeowner secondary-dwelling projects pay one pathway, not both, but you shouldn’t guess from a neighbour’s story two suburbs over.
If the quoted levy looks out of scale with the build, ask for the contributions plan extract in writing. Mistakes happen. Silent acceptance is how $25,000 disappears from the contingency. But don’t argue the policy on a Facebook group. Argue the extract that applies to your lot.
Some LGAs switched mechanisms when they updated plans. Confirm the live schedule, not a 2022 quote sitting in a builder’s template.
How this fits a CDC build
On CDC projects, contributions are still assessed against the relevant plan. Timing of payment can differ by council and certifier process. Confirm whether you pay before the CDC is released or at another milestone. If cashflow is tight, that date matters more than the headline dollar figure.
For the approval pathway itself, read NSW CDC vs DA. For setbacks that keep you on CDC, see the setbacks guide. CDC skips a full DA assessment. It doesn’t skip infrastructure money.
Frequently Asked Questions
Are CDC granny flats exempt from contributions?
Not automatically. Exemptions are rare and plan-specific. Always check the contributions plan for your lot.
Can I negotiate contributions?
Sometimes via voluntary planning agreements, but most homeowner granny flat projects pay the standard rate. Get legal advice before chasing a VPA for a single secondary dwelling.
Where do I find my council’s plan?
Start with your council website and the NSW Planning Portal links for your LGA. Your private certifier should also confirm the applicable schedule before you pay a deposit on a kit.
How much does council approval add to your build budget?
Council and certifier fees sit outside the builder quote. In NSW, a CDC pathway through a private certifier often lands between roughly $3,000 and $8,000 once survey, BASIX and Sydney Water checks are included, while a full DA can cost more because of longer consultant time and holding costs. Victoria and Queensland use different fee schedules, so treat any single number as a starting point. Model your own project in our cost calculator, then compare supplier quotes through get a quote when your footprint is settled.
What design choices affect approval speed?
Setbacks, height, floor area and tree protection overlays decide whether you stay on a fast CDC track or drop to a slower DA. Staying under common 60 sqm internal caps, keeping adequate side and rear setbacks and connecting services without major easement conflicts usually keeps the pathway simpler. If your block is sloped, flood-affected or heritage-listed, expect extra reports before council or your certifier can sign off. Use the setback checker and approval wizard against your address before you pay for custom drawings.
Primary sources
These cards are an editorial summary of official pages. The Granny Flat Guide is not a certifier, council or licensed builder. Check the live official URL before you lodge or sign.
- Your Home (Australian Government)Your Home: Australia's guide to environmentally sustainable homes
- Australian Building Codes BoardNational Construction Code
- NSW Planning PortalState Environmental Planning Policy (Housing) 2021
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