Are you thinking about building a new house or minor unit, extending your business or subdividing in Auckland in the next 12 months

Posted on Wednesday, April 18 2012

If you are thinking about Property Developing in the next 12 months it may be worth getting your building or resource consent application in before 1 July to take advantage of potential savings contained within the transitional provisions of Auckland Council’s new Development Contributions Policy.

As part of the preparation of the Council’s new long term planning documents, a new Development Contributions Policy has been prepared (as noted within Andre Conradie’s article last month) to replace the current (Interim) contributions polices of the various former Councils. This new Policy will come into effect on July 1st this year.

When it comes into effect, the new Policy may increase the amount of money that you will have to pay to the Council for permission to undertake certain types of development. The increase in contributions is potentially significant. For example, in the old Rodney District Council area, we are aware of (in some cases) increases of 20% for a new subdivided Lot all the way to a whopping 70% increase (from around $4,900 to $8,200) for new Minor Units in rural areas.

There is, however, a transitional period where the lower of either the current/interim or new policy contributions will be used and this depends on when your application is submitted and when it is approved.

There are four scenarios:
1. If you lodge for consent in the next 2 and a bit months and are granted permission prior to 1 July 2012, you will be assessed against the current policy.

2. If you lodge for consent after 1 July 2012 you will be assessed against the new policy and potentially pay more.

3. If you lodge for consent before 1 July 2012 and the application is approved before 30 June 2013 you will pay the lower of either the current (Interim) policy or the new policy.

4. if you lodge before 1 July 2012 but your consent is not granted until after 1 July 2013 then you will be assessed against the new policy (or any new later version)

As noted, it is possible that the new policy will result in the contribution increasing significantly if you do not submit your application before the new policy comes into effect on the 1st of July. On the other hand, if you are about to submit it may be worth checking to ensure that you are not paying too much.

For the above example of Minor Units, the saving is in the region of $3,300 which would likely cover most of the cost of the Council’s Building and Resource Consent Fees.

So, if you are thinking about developing in the next year, give us a call on 09 426 7007 to see whether there is a cost saving available by taking advantage of the transitional arrangements.


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Expert's Bio

Mark Benjamin

At Terra Nova Planning, we specialise in strategic and policy planning, structure planning, urban design, and the consenting of development schemes. We have a track record of many hundreds of successful land use and subdivison resource consents.

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