DEVELOPER CONTRIBUTIONS: AN ECONOMIC ANALYSIS OF SECTION 94 OF THE NSW ENVIRONMENTAL PLANNING AND ASSESSMENT ACT OF 1979

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Reduced funding from higher levels of government to local authorities for infrastructure has induced an increased emphasis on user pays financing techniques, such as Section 94 in NSW. However, an analysis of 1993 data on Section 94 contributions demonstrates that some small local authorities cannot use Section 94 to levy developers in an efficient manner. It is argued that alternative methods of raising funds from developers, like ad valorem taxes, should be employed instead by these councils.