S94 contribution fee Blacktown!!!

This is what we received today for our 60sqm 2 bed 1 bath granny flat. Does this sound right to you?!! Blacktown council wouldn't send us email or invoice. This is verbal bill!
"The S94 Contribution Fee = $9200.00 which must be paid prior to start of works & will be increased again after 21/10/14
Council Refundable Bond = $830.00 - must be paid prior to start of works
Council Road Damage Inspection & Administration Fee = $143.00 - must be paid prior to start of works."

We have 7 days to pay this or it will go up again! Day light robbery I reckon. Gosh. :eek:
I was expecting around $4000-$5000. :confused:
 
Jsoe, there is no obligation to provide a tax invoice until after the bill has been paid.

If you go to the planning desk, they have a copy of all the scheduled charges.

Why is the charge increasing on 21/10/14? Annual date of increase? Random?

How was the charge advised to you? Did it come to you on the DA?
 
wow.. that's insane,

Parramatta City Council just charged us $5750 for an entire duplex almost 400sqm.

$9200 for 60sqm IS daylight robbery.:eek:..Are you certain you heard right...

Only thing I can think of is that they now want to discourage too many GFs in the area..
 
It was via PCA.
We budgeted for $5000 max but apparently fees went up last month. And to go up higher in a weeks time. Just shocked about the scale of these jumps. I heard Blacktown is one of the wealthiest councils and there's no governance as to how these S94 are charged. So much for encouraging affordable housing.
It's ok. Just gotta pay I guess.
End if my rant!
 
Did you get the granny flat under a cdc (complying development cert)?

I'm not sure about blacktown but in Hornsby they wern't charging s94 for grannies that were complying development approved under the affordable rental housing SEPP.

Maybe things are different in blacktown
 
wow highway robbery! They should issue you a letter with the fee amount in writing then you get an invoice when paid. I got a letter for mine from Fairfield Council only $3833 :)
 
It depends on which suburb within Blacktown. The section 94 contribution is a complex calculation with takes into account the services (or lack of) of any particular suburb not the entire council.

If its makes you feel any better "stanhope gardens" would cost you over $20,000. Riverstone is over $10,000 etc.

In short section 94 contributions should be a consideration for anyone thinking of investing in a granny flat and do not simply take most builders advice that the cost will be circa $4k because you might be in a for a rude shock sometimes.

And if you are thinking this is a rort, yes it is, its a topic developers, builders have been fighting against against without any traction because the public is generally happy to see us "whining" builders\developers pay through the nose. What the public dont understand we simply pass that cost onto the consumer (literally) as council send the invoice directly to the property owner.

Then the property owner passes it on to the renter :)


Jsoe, there is no obligation to provide a tax invoice until after the bill has been paid.

If you go to the planning desk, they have a copy of all the scheduled charges.

Why is the charge increasing on 21/10/14? Annual date of increase? Random?

How was the charge advised to you? Did it come to you on the DA?
 
I've got no beef about S94 contributions per se, someone has to contribute towards the provision of infrastructure, and it is the owner/investor.

At present, I am aware of several sections of Rivo which are subject to compulsory acquisition for the provision of drainage. Who do you expect will pay for these items?

You can't exactly pass the cost on to the tenant, in a perfect market, the S94 contribution will be recouped by the owner as a component of the rent (but not separately identifiable), it might take 40-50 years to recoup your initial outlay over the life of the project.
 
We paid $3900 form memory. Blacktown Council 2012.

We paid S94 to Blacktown Council $4800 in July 2013. Based on indexation I would think to be close to $6000, but over $9000 is outrageous.

Blacktown council has of the most GF builds, so escalating S94 fee might help ease the rental downfall in the long run. That's just me selfish thinking.
 
I have nothing against S94 and understand the purpose of it. My annoyance is the lack of governance or policy around the indexing and fees increases. Councils are running wild on their horses in cowboy hats! Last year S94 was just about $4k. This year, it's more than doubled. Why? No idea! What's gonna happen in a weeks time when another indexing kicks in? Triple fees? Who knows! Blacktown council has the biggest area of suburbs and they are filthy rich. Anyway, can't even quote bribery or corruption. Robbery. But it's totally legal. Funny that!
 
We paid $ 4747 in Marayong in 2012, and avoided it with our first build. Looking like they are trying to price them out of being built. Shame for families that need them.
 
wow that is a huge jump in fees with such little notice or warning. Jsoe, if you dont mind me asking, would you have gone ahead with granny flat if you were aware of the fees form the beginning?
 
This is what we received today for our 60sqm 2 bed 1 bath granny flat. Does this sound right to you?!! Blacktown council wouldn't send us email or invoice. This is verbal bill!
"The S94 Contribution Fee = $9200.00 which must be paid prior to start of works & will be increased again after 21/10/14
Council Refundable Bond = $830.00 - must be paid prior to start of works
Council Road Damage Inspection & Administration Fee = $143.00 - must be paid prior to start of works."

We have 7 days to pay this or it will go up again! Day light robbery I reckon. Gosh. :eek:
I was expecting around $4000-$5000. :confused:


It's ok (not really) if they gave you this bill/invoice for this so called contribution. But why is this request for payment only verbal??? It does not sound legit to me!? Surely someone above the council can enforce this?? I'm bloody outrag:mad:ed!!
 
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