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Headworks holiday
Headworks holiday

State government headworks waiver

To promote building and construction investment in Tasmania, the state government has announced a two-year ‘headworks holiday’.

This will have a direct impact lowering costs of developments connecting to Taswater’s water or sewerage network.

The following frequently asked questions will be of use to developers, and contact details for Taswater are listed below.


Frequently asked questions

Q1: What are headworks charges?

A: Headworks charges are one component of developer charges. Developer charges are upfront charges imposed on developers as a condition of connection to TasWater’s water or sewerage network.

Developer charges encompass:

1. Works Internal - reticulation assets within the development put in by the developer and transferred to TasWater

2. Works External - extensions to connect to TasWater’s network put in by the developer and transferred to TasWater

3. Headworks - payments for defined costs of new or existing assets deemed to be attributable to the new development (ie. to purchase capacity in the system).

The headworks waiver policy applies only to the headworks component of developer charges. The scheme involves the state government reimbursing TasWater for headworks charges that would otherwise be payable by developers. While developers are nominally responsible for headworks charges, the government has agreed to pay TasWater on developers’ behalf – developers will not be required to pay headworks charges for eligible projects.

Q2: What are the eligibility criteria for developments to have headworks charges waived?

A: The eligibility criteria have been determined by the state government.  The waiver applies to developments during the eligibility period, being 1 April 2014 to 31 March 2016.

For subdivisions the final plan of survey must be lodged with council and the works must have reached practical completion in the eligibility period.

For other development activities the Certificate of Certifiable Works must be applied for or issued during the eligibility period.

The program is primarily designed to bring forward pending and new developments, rather than supporting projects that are already under construction.

Q3: I have received an invoice to pay works external charges for my development.  Why should I have to pay this when the state government has announced a waiver of headworks charges?

A: The state government’s headworks waiver only applies to the headworks component of developer charges. Developers remain responsible for costs associated with works internal and works external to their development.

Q4: Do I have to apply to TasWater or the state government in order to have my headworks charges waived?

A: No. There is no specific application required outside the normal Development Application process.

For eligible developments, TasWater will condition the headworks amount in the Planning Permit as normal, but will include an advice clause which will note that if the amount payable for headworks falls due and payable in the period 1 April 2014 to 31 March 2016 then such amount will be payable by the state government, rather than the developer. There is no need for the developer to register with the government or seek reimbursement of headworks charges.

Headworks charges will become payable by developers when the headworks charge falls due and payable after 31 March 2016, ie after the eligibility period ends.

Q5: How is this waiver going to be funded? Will TasWater increase charges in other areas to cover costs?

The state government is compensating TasWater for lost revenue as a result of this change directly from the state budget. There is no impact on other water and sewerage charges.

Q6: I have more questions to ask about my development and TasWater charges, who do I talk to?

A: TasWater’s Development Services team can speak to you about connecting water and sewerage services to your development (136992) or alternatively you can email development@taswater.com.au.

Q7: Who in the state government should I contact to find out more about the headworks waiver?

A: If your question relates specifically to the state government’s waiver of headworks charges, please contact Simon Arnold from the Department of Economic Development, Tourism and the Arts on (03) 6165 5231 or via email to simon.arnold@development.tas.gov.au.

 

 

 

This page has been produced by the Department of Economic Development, Tourism and the Arts. Questions or comments concerning the contents of the site can be directed to the webmaster by email to info@development.tas.gov.au.

The URL for this page is: http://www.development.tas.gov.au/economic/economic_development_plan/achieving_our_vision/sector_development/sector_strategies/building_and_construction/headworks_holiday    This page was last modified on 12th May 2014.