Background

Council’s Planning Agreement Policy provides a framework for managing Voluntary Planning Agreements (VPAs)

The policy is founded on the principle of ‘value sharing’ or ‘value capture’, which reflects the expectation that developers benefiting from a value ‘uplift’ through increased development rights should share a portion of this uplift with the community.

Waverley’s Planning Agreement Policy 2014 has been successfully used to negotiate and draft planning agreements accompanying Development Applications (DA's) seeking to vary the floor space ratio under Clause 4.4 of the Waverley Local Environmental Plan, and proponent-led Planning Proposals seeking development uplift.

In instances where a development exceeds established planning standards and can proceed without resulting in unacceptable impacts, the value sharing mechanism enables the community to derive a net benefit in the form of additional infrastructure and enhanced amenity. Contributions have been dedicated towards public domain upgrades including streetscape upgrades, parks, sports facilities, and other public assets.

Proposed Changes

The Planning Agreement Policy Amendment 6 is a result of a Council report examining the relationship between the Planning Agreement Policy and the Waverley Affordable Housing Contribution Scheme (AHCS) to ensure reasonableness, assess duplication and ensure that maximum community benefit is achieved in the application of both policies. The report also examined the past and projected income received from both schemes.

The Planning Agreement Policy and AHCS are both examples of policies that levy contributions on development in different circumstances for a public benefit. You can read more about the Waverley Affordable Housing Contribution Scheme here.

Below is a summary of the key changes proposed to the Planning Agreement Policy:

Why is this changing?

VPA's have historically been a primary mechanism for generating income to Council's Affordable Housing Reserve, whereby 25% of the contribution levied is dedicated to Council's Affordable Housing Reserve. The remaining 75% is dedicated to the Planning Agreement Reserve, for spending on capital works (streetscape upgrades, parks, public assets, etc)

However, it is expected that the number of offers to enter into a VPA will decline in future years. The uptake of FSR bonuses provided under the Housing SEPP is likely to reduce FSR exceedances whereby associated VPA value capture cannot be levied. Meanwhile, the AHCS is expected to provide a consistent and increased source of contributions for affordable housing into the future.

Because of this, it is recommended that the current 25% maximum standard affordable housing allocation be deleted, such that all VPA contributions are allocated to the Planning Agreement Reserve for capital works, except where a VPA is offered in lieu of a contribution charged under chapter 2 (Affordable Housing) of the State Environmental Planning Policy (Housing) 2021, in which case 100% of the funds may be dedicated towards Waverley’s Affordable Housing Reserve.

This amendment would ensure that the Affordable Housing Reserve receives sufficient, reliable and constant funding to deliver affordable housing. At the same time, this amendment aims to ensure the Planning Agreement Reserve receives sufficient income to contribute towards Council's capital works program.

Why is this changing?

Because the types of public benefits that can be funded by VPAs is broad, the Waverley Public Benefit Register exists as an iterative and non-exhaustive list of possible specific public benefits that VPA contribution funding may be dedicated to. While the Public Benefit Register is supposed to assist in the selection of a public purpose dedication, the Register has not been effectively utilised or updated since 2022.

Therefore, it is recommended the Waverley Public Benefit Register be deleted, and section 2.5 of the Planning Agreement Policy be relied upon to recognise Council’s 7.12 Development Contribution Plan to guide the selection of public purpose dedications for planning agreements.

Why is this changing?

It is recommended that the standard planning agreement template (appendix 3 of the Planning Agreement Policy) be amended to remove reference to affixing Council’s Seal. This will allow post-exhibition planning agreement reports for Council approval to be reported to both Council and Council Committee meetings (Strategic Planning and Development Committee and the Finance, Operations and Community Services Committee).

How to submit feedback

Please submit your feedback on the draft VPA Policy through one of the following methods:

Feedback closes at 11.59pm, Wednesday 25 June 2025.

Please note that the comments submitted will form part of Council’s public record and as such can be made available for public viewing on request.

For more information, please contact Leonardo Shaw-Voysey, Strategic Town Planner, through Council’s Customer Service on 9083 8000, or via email at strategictownplanning@waverley.nsw.gov.au