Developer Charges

Developer Charges are location-specific charges that Hunter Water requires developers to pay prior to issue of a Section 50 Compliance Certificate for a specific development. Developer charges help recover Hunter Water’s costs of providing, upgrading and augmenting infrastructure to support growth in our area of operations.

Without developer charges, the additional costs of servicing new growth are recovered over the life of the asset through regulated charges paid by all Hunter Water customers. By charging location-specific developer charges, we not only ensure our existing customers do not face higher water bills as a result of new development, but also encourage urban development in the areas with the lowest infrastructure costs.

Explore our Development Servicing Plan (DSPs) areas, the charges and other resources using our interactive tool.

How are Developer Charges calculated?

Once you have submitted a Development Assessment application to us, our Land Development Team will calculate the developer charge for your specific development and include the estimate in the Notice of Requirements letter.

Each Developer Charge is calculated based on 3 factors;

• The type of development you are constructing and how much demand it will place on our networks? We call this Equivalent Tenement or ET.
• The location of your development? Our area has been broken up into 9 water areas and 20 wastewater areas . We call these Development Servicing Plans or DSPs.
• Any existing development that may be on that site? We look at the previous usage on the site (if any) and include this as an Applicable Credit.

The charge is then calculated by ET x DSP rate - Applicable Credits = Developer Charge. This is calculated for both water and wastewater.

Can I calculate a developer charge without applying?

Yes, you can. You will just need to know how many ET you are contributing and then which DSP location you are developing in. You may not be able to calculate the credits for existing developments, however we can refine your estimate once we receive your application.

• We have a Developer Charges guideline that will help you get an estimate of how many ET your development will contribute to our network - see Appendix A from page 24-32.
• We have interactive maps for both water and wastewater DSPs, so you can enter the property address and see the rate for the location - do this for both water and wastewater.

Once you have your estimated ET and the DSP, simply multiply these to estimate your charge. Please note that phasing of the charges (below) may impact this estimate.

When are the charges implemented?

To provide the development community with time to adjust to these new arrangements, the NSW Government has directed Hunter Water to gradually reintroduce developer charges over several years. Prices will be phased in as follows:

• From 1 July 2023: 0%
• From 1 July 2024: 25%
• From 1 July 2025: 50%
• From 1 July 2026 onwards: 100%

When are the charges determined?

While we will provide an estimate in your Notice of Requirements letter, final calculation and payment of the developer charge can only be made once all Hunter Water requirements have been met, including a DA Consent or Complying Development Consent has been provided to Hunter Water, and in the case of works being required, once the works have been completed in accordance with a developer works deed and a finalisation package has been submitted.

How will I pay the charges?

We have created 3 easy ways to pay the developer charge which will be delivered from our Property Self Service Portal. Credit Card and BPay payments will be as standard, along with PayID for payments greater than $100,000. Applicants and developers will also see a few new changes with the reintroduction including

• the need to collect the owner/developer’s details for invoicing purposes as part of the application process
• a Notice of Payment Required (NOPR) will be issued to both the applicant and developer detailing the final developer charge calculation and the next steps
• an invoice being issued to the developer detailing how to make the required payment.

Other questions on Developer Charges?

What is a Section 50 certificate?

Watch our video to find out what a Section 50 certificate is, what types of developments require a Section 50 certificate and the different types of works involved.