On 15 August 2017, Clause 20 of Schedule 10 of the Development Regulations 2008 was amended.
What is the new threshold?
The effect of the new clause is that the State Coordinator-General can assign a development to the State Planning Commission for assessment when works for all stages of the development either:
- exceed $5 million in Metropolitan Adelaide [up from $3 million under the previous provision]; or
- exceed $3 million outside Metropolitan Adelaide.
Importantly, new subclause 20(3) sets out that the total amount for the above thresholds is to be determined by including any amounts to be applied to:
(a) any building or structure or any improvements or other physical changes to a building or structure; and
(b) any improvements or physical changes to land; and
(c) any preliminary work (including, without limitation, site clearance, demolition and remediation); and
(d) any professional services; and
(e) the provision of, or any modifications to, infrastructure; and
(f) any construction work, fit out, signage, utilities, communications, security services, landscaping and contingencies.
It does not include an amount to be applied for the purchase of land or any interest in land.
This provision removes much of the uncertainty as to what works or items are to be used to calculate the development costs.
What development is affected?
Certain residential development is excluded from the ambit of Clause 20, including development solely for single private dwellings and multiple private dwellings.
However, purpose built student accommodation, aged care and serviced accommodation can all be considered for ‘call-in’ by the State Coordinator-General, along with any non-residential development.
No requirement for “economic significance”
There is a further change to Clause 20, with there no longer being any requirement that:
- the development be “of economic significance to the State”; or
- assessment of the development be “best achieved” by State Government assessment.
Rather, the State Coordinator-General need only determine that the development is a development the assessment of which “should be carried out by the State Planning Commission”.
The State Planning Commission will presumably refer any such ‘call-in’ to the State Commission Assessment Panel (“SCAP”), which was recently established by the State Planning Commission to continue the assessment functions formerly undertaken by the Development Assessment Commission.