Granny Flats and Section 94 Contributions Explained

[mic33y]

Hi mic, sorry been busy and didnt see yer post. She just got her approval granted by our Certifier for a 2br granny flat in Auburn- this was ast week. He rang me to tell me he's not allowed to print out her consent unti she pays the Section 94 Contributios fee and present him with the receipt.

Was just bloody awesome I had to call the poor woman and tell her. Was actually my first granny flat approval in Auburn. Councils change fees at the dropof a hat anyway. Made me feel awful I know that much.

P.S. Quoted build price (on the form) was $84,000

Hi Brazen,

Thanks for your reply.

This is absolutely not what I want to hear.

From what I read on their website, my interpretation is that you will only get slugged if development is over $100k. I take it this is not the case!

http://www.auburn.nsw.gov.au/Develop/Contributions/Pages/DevelopmentContributions.aspx

 

[mic33y]

Hey Brazen,

I've just called Auburn council for clarification.

They charge S94 contributions by the number of rooms for the development. Not by cost of work.

1 Bedroom = $2800.02
2 Bedroom = $5385.24
3 Bedroom = $7232.00

I'm absolutely gutted with this news!

 

[brazen]

Hey Brazen,

I've just called Auburn council for clarification.

They charge S94 contributions by the number of rooms for the development. Not by cost of work.

1 Bedroom = $2800.02
2 Bedroom = $5385.24
3 Bedroom = $7232.00

I'm absolutely gutted with this news!

Yea it's pretty nasty. You can designate 1 bedroom as a study if that helps.

 

[mic33y]

Yea it's pretty nasty. You can designate 1 bedroom as a study if that helps.

Hey Brazen,

Of course it will definitely help if I can designate 1 of the bedroom as a study!

I will definitely give that a try!

Any other tricks of the trade?

 

[brazen]

Hey Brazen,

Of course it will definitely help if I can designate 1 of the bedroom as a study!

I will definitely give that a try!

Any other tricks of the trade?

Not with S94 Constributions, although I do encourage our Owner-Occupiers to lobby their local member regarding these charegs.

Investors dont have so much of a leg to stand on though.

 

[saiman]

Hi all,

Word of warning, DO NOT delay paying your S94 fee as they go up every year due to inflation. Mine at Blacktown City Council went up a couple of hundred $ because I hadn't paid it before they re-indexed their figures

Funny when I asked how to pay the fee and the response was to pay at the front desk in cash LOL. Seems like legalised robbery to me.

 

[brazen]

Hi all,

Word of warning, DO NOT delay paying your S94 fee as they go up every year due to inflation. Mine at Blacktown City Council went up a couple of hundred $ because I hadn't paid it before they re-indexed their figures

Funny when I asked how to pay the fee and the response was to pay at the front desk in cash or with a bank cheque LOL. Seems like legalised robbery to me.

Hi Simon,

yea it is robbery. Luckily we've been able to dodge it in most cases, but why Blacktown still charge it is beyond me! It's not like Blacktown is an affluent municipality. Just before i did your job, they had a way out via a stat-dec for owner-occupiers. Oh well.

Just 2 days ago we learned that WYONG COUNCIL are charging $8,000 - $10,000 per granny flat regardless of costs of works or the amount of bedrooms, so count yoursef lucky. How much is Blacktown charging you- around $4,000?

 

[saiman]

Hi Simon,

yea it is robbery. Luckily we've been able to dodge it in most cases, but why Blacktown still charge it is beyond me! It's not like Blacktown is an affluent municipality. Just before i did your job, they had a way out via a stat-dec for owner-occupiers. Oh well.

Just 2 days ago we learned that WYONG COUNCIL are charging $8,000 - $10,000 per granny flat regardless of costs of works or the amount of bedrooms, so count yoursef lucky. How much is Blacktown charging you- around $4,000?

Currently $4747! Due to go up at the end of October!

I questioned why they were still charging this fee whilst most councils are dropping their fees or at least changing them so that they exclude builds under $100k and their response was that they see about 30 granny flats go up every month in their LGA which represents a huge burden on council resources which must be accounted for?!

Should I take out $4747 in 5c coins? haha

 

[Pins]

Singleton

Yea it's pretty nasty. You can designate 1 bedroom as a study if that helps.

Hi Brazen,

Have you done any granny flats in the Singleton area in the Hunter Valley?

Pins

 

[brazen]

Should I take out $4747 in 5c coins? haha

haha why not! Although i think there's a statute that limits how much currency you can pay (per transaction) for each coin denomination

 

[brazen]

Hi Brazen,

Have you done any granny flats in the Singleton area in the Hunter Valley?

Pins

Hi Pins,

No,sorry the closest I've been to Singleton is Cessnock Council, who do charge the levy.

I just looked on the Singleton Council website but couldn't see anything specific for granny flats. I suggest giving them a call and asking if/what they charge and:

1) If Number of bedrooms affects the levy
2) If 'Cost of Works' affects the levy
3) If the occupant is a family member, can the fee(s) be waived.

Section 94 Contribution levies are usually a combination of 2-3 parts of the policy combined into one wonderfully over-inflated ripoff

 

[brazen]

AUBURN COUNCIL:
http://www.auburn.nsw.gov.au/Develop/Contributions/Pages/DevelopmentContributions.aspx


"Current section 94 contribution rates are - For the June quarter 2012:Section 94:
Secondary dwelling (granny flat) : 1 bedroom = $2,816.81;
2 bedrooms = $5,417.55.

The Auburn Development Contributions Plan 2007 requires payment prior to the issue of a Construction Certificate or a Complying Development Certificate."

 

[devank]

"Current section 94 contribution rates are - For the June quarter 2012:Section 94:
Secondary dwelling (granny flat) : 1 bedroom = $2,816.81;
2 bedrooms = $5,417.55.

How much is it for a 1 bed + 1 study?
Can we call a room without built-ins as study??

 

[brazen]

How much is it for a 1 bed + 1 study?
Can we call a room without built-ins as study??

hey Devank, good question.

At Cessnock it worked- twice.

At Blacktown it worked- twice.. but the third time (last month) they said "nup it's a 2nd bedroom"!

grrr! Blacktown actually now have a lady whos Job Title is "Section-94 Cointributions Officer"

So her job is to sit there all day and look through approvals and grab for your cash. Far out!

 

[western_sydney]

If you talk for the right person at Blacktown council they'll allow you to pay S94 contributions on card. Doesn't make paying any less painful but does make it slightly more convenient.

 

[devank]

At Blacktown it worked- twice.. but the third time (last month) they said "nup it's a 2nd bedroom"!

May be.. a room without a door or built-ins should get through.

 

[brazen]

If you talk for the right person at Blacktown council they'll allow you to pay S94 contributions on card. Doesn't make paying any less painful but does make it slightly more convenient.

That's kind of them

 

[saiman]

so top tip - get 2 sets of plans drawn one with no door and BIR for S94 purposes and just add in a door and BIR after? (I think most certifiers won't have a problem as long as it still meets BASIX?)

EDIT: also I can't imagine most people paying this fee particularly for granny flats - Im sure blacktown council and councils of "less affluent" areas have a large list of outstanding payments to be made....

Presuming I can still have my granny flat insured without an occupancy certificate, are there any other implications with not paying (apart from the rates going up every year) Perhaps it will be difficult when it comes to selling time? Will councils take you to court over the fees? I have not had any phone calls or emails or letters from council in chasing this fee...

 

[western_sydney]

They will chase you for it in Blacktown. They have an officer to do just this.

 

[baby blue eyes]

I had to pay Blacktown council $4747 last month before the Certifier could issue the approval for the granny flat. Last year the council did not charge me a fee for the same size granny flat, so I count myself lucky!! Both are two bed 60sqm designed by serge....