What Are Infrastructure Charges?
Infrastructure charges (also called development contributions, headworks charges, or infrastructure levies) are fees charged by state and local governments when new lots are created through subdivision. The money funds the public infrastructure — roads, parks, water, sewer, schools, community facilities — that new residents will use.
They are often the single largest cost in a subdivision project, and many first-time developers are caught off guard by their size.
Why Infrastructure Charges Matter So Much
Consider a simple example: you're subdividing a 1,200 m² block into two 600 m² lots. The infrastructure charges might be $25,000 per new lot — meaning $25,000 for the one new lot you're creating. That's $25,000 that directly reduces your profit.
If you didn't account for this when you bought the block, you may have overpaid — or the project may not stack up financially.
Always estimate infrastructure charges before you buy a development site.
Infrastructure Charges by State
Queensland
In QLD, infrastructure charges are set under the Planning Act 2016 and administered by local councils. The state government sets a maximum charge schedule.
| Charge Type | Amount | |-------------|--------| | State infrastructure charges (water, sewer) | $15,000–$30,000 per lot (via council) | | Local government charges (roads, parks, community) | $5,000–$20,000 per lot | | Typical total (residential lot) | $20,000–$50,000 per new lot |
QLD charges are among the highest in Australia. The state government's infrastructure charges schedule (Maximum Adopted Charges) sets a cap, but councils can charge up to the maximum.
Notable QLD council charges (per new residential lot):
- Brisbane City Council: $25,000–$35,000
- Gold Coast City Council: $28,000–$40,000
- Sunshine Coast Council: $22,000–$32,000
- Livingstone Shire Council (Yeppoon): $18,000–$28,000
- Rockhampton Regional Council: $15,000–$25,000
New South Wales
NSW uses Section 7.11 contributions (formerly Section 94) under the Environmental Planning and Assessment Act 1979.
| Council | Typical Contribution per New Lot | |---------|----------------------------------| | Sydney LGA | $15,000–$30,000 | | Blacktown | $20,000–$35,000 | | Liverpool | $18,000–$28,000 | | Penrith | $22,000–$38,000 | | Newcastle | $12,000–$22,000 | | Wollongong | $10,000–$20,000 | | Parramatta | $15,000–$25,000 | | Hawkesbury | $8,000–$18,000 |
NSW also has a state infrastructure contributions (SIC) scheme for high-growth areas, which adds an additional $10,000–$20,000 per lot in some areas.
Victoria
Victorian development contributions are set under Development Contributions Plans (DCPs) or the Development Infrastructure Levy (DIL).
| Council | Typical Contribution per New Lot | |---------|----------------------------------| | Melbourne City | $8,000–$20,000 | | Boroondara | $5,000–$15,000 | | Casey | $10,000–$25,000 | | Wyndham | $12,000–$28,000 | | Ballarat | $4,000–$12,000 | | Geelong | $5,000–$15,000 | | Mornington Peninsula | $6,000–$16,000 |
Western Australia
WA infrastructure contributions are set by local councils and the Water Corporation (for water and sewer headworks).
| Charge Type | Amount | |-------------|--------| | Water Corporation headworks | $8,000–$15,000 per lot | | Local council contributions | $3,000–$12,000 per lot | | Typical total | $11,000–$27,000 per new lot |
WA generally has lower infrastructure charges than QLD and NSW, which is one reason Perth has been a popular subdivision market.
South Australia
SA infrastructure charges are set under the Planning, Development and Infrastructure Act 2016.
| Charge Type | Amount | |-------------|--------| | SA Water headworks | $5,000–$12,000 per lot | | Local council contributions | $2,000–$8,000 per lot | | Typical total | $7,000–$20,000 per new lot |
SA has some of the lowest infrastructure charges in Australia, which contributes to its relatively low overall subdivision costs.
Tasmania
Tasmania has relatively low infrastructure charges:
| Charge Type | Amount | |-------------|--------| | TasWater headworks | $4,000–$10,000 per lot | | Local council contributions | $1,000–$5,000 per lot | | Typical total | $5,000–$15,000 per new lot |
How to Find Out Your Exact Infrastructure Charges
The most reliable way to find out your infrastructure charges is to:
- Contact the council directly — Ask for the infrastructure charges schedule for your zone and lot type
- Check the council's Contributions Plan — Usually available on the council website
- Get a professional feasibility assessment — STN Civil Solutions includes infrastructure charge estimates in all reports, based on the current schedules for your specific council
Infrastructure Charges vs. Civil Works: What's the Difference?
Infrastructure charges are fees paid to government — they fund public infrastructure.
Civil works are construction costs you pay to contractors — they fund the physical works on your site (driveway, drainage, service connections).
Both are costs of subdivision, but they're separate and both need to be budgeted.
Get an Infrastructure Charge Estimate for Your Property
STN Civil Solutions includes infrastructure charge estimates in all subdivision feasibility reports. Submit your address at stncivil.com and receive a comprehensive report within 48 hours — including estimated infrastructure charges for your specific council and zone.
Reports start at $750.
