The first and most tangible change is an increase in Charge Rates. The rate for Council related infrastructure charges for each additional lot or 3+ Bedroom unit/townhouse has increased from $14,167.95 to $14,346.12. This represents a 1.26% increase.
The second is a change to the mechanisms for Recalculating the Establishment costs for Required Land (Section 27). Council is now going to refer all Land Valuations to its Registered Valuer in the first instance. It can no longer accept Applicant Valuations directly. There seems to be no timeframes within the Resolution for Council’s Registered Valuer to finalise its response on the matter. Once Council has received their Registered Valuers Report they can choose to either agree to the Applicant Valuation, proposed an Amended Valuation based on the Registered Valuers advice, or refer to case to an Independent Valuer.
This additional mechanism has the potential for both positive and negative impacts on Urban Developers. The positive is that Council’s response is now more flexible and avoids situations which have arisen in the past where Council delayed agreeing to a negotiated Valuation because the former Resolution did not allow them the flexibility to do so. However the seeming lack of a timeframe for the operation of the Registered Valuer is a concern, as is the likely additional costs which will no doubt be applicable to the appointment of an Independent Valuer. Given the importance of this issue at the back end of projects, we will keep a close eye on how this mechanism operates in the future, so as to appropriately advise our Clients on the timeframes and costs applicable.
Feel free to contact John Pappas or Shane Talty if you have any further queries about Infrastructure Charges and Offsets in Brisbane City.