[2025] WASC 192
General information, not legal advice.
Supreme Court of WA
2025-05-22
Howard J
Original judgment source is linked above.
From here I refer to these two documents together as the Review.
a declaration that a review carried out by Mr Len Kosova (comprised in reports dated 16 March 2023 and 20 October 2023) of the amount of cost contributions payable by the Plaintiffs under the Armadale Redevelopment Scheme 2 (Scheme) and the Forrestdale Business Park East Development Contribution Plan, constituted a valid review of the amount of the cost contributions for the purposes of clause 7.11 of the Scheme.[16]
In most instances the Authority will provide, or make plans to provide, the majority of new infrastructure within each project area prior to private land owners undertaking redevelopment of their land. Accordingly the Authority will seek to recoup costs associated with infrastructure provision from land owners who benefit from this work, by requiring Development Contributions.
Chapter 7 sets out the provisions for the preparation and application of Development Contribution Plans, which set out the works and contribution system for an area. These plans are prepared to assist in the timely, equitable funding and provision of physical and social infrastructure in the Authority's Scheme Area.
Land owner Development Contributions are usually made by way of making payments, or, where appropriately guided by the applicable development contribution plan, offset by undertaking works on behalf of the Authority or ceding land to the value of the contribution. The requirement to provide a contribution is usually triggered by developing or subdividing land.[18]
To plan and provide for the infrastructure needs of [Forrestdale Business Park East] in a holistic and timely manner, the Authority established a DCP for use in conjunction with the statutory planning framework, including the Scheme, the Forrestdale Project Area Design Guidelines and relevant Development Policies. The DCP apportions costs via contributions from land owners who will benefit from key investment in infrastructure and services required to activate landholdings for development in accordance with the Forrestdale Business Park (East) Structure Plan (the Structure Plan).[21]
... a financial contribution required from an owner towards the Development Costs in a Development Contribution Area, in accordance with a Development Contribution Plan. Liability for a Development Contribution is set out in clause 7.9 [of the Scheme].[23]
The DCP has delivered $49,270,141.60 in planning, environmental and infrastructure works with $1,042,394.91 of development costs remaining, based on estimates prepared in July 2021. The DCP has received contributions of $39,302,028.21, resulting in total outstanding contributions of $11,268,348.30. There is an Outstanding Net Developable Area of 343,997m2.[24]
(1) The value of Development Costs shown in a Development Contribution Plan are to be based on amounts expended, but when expenditure has not yet occurred, they are to be based on the best and latest estimated costs available to the Authority.
(2) The Authority is to have such estimated costs independently verified by an appropriately qualified person and must include this verification in the Development Contribution Plan.
(3) Where any cost contribution has been calculated on the basis of an estimated cost, the Authority-
(a) is to adjust the cost contribution of any owner in accordance with the revised estimated costs; and
(b) may accept a cost contribution, based upon estimated costs, as a final cost contribution and enter into an agreement with the owner accordingly.
(4) Where an owner's cost contribution is adjusted under subclause 3, the Authority, on receiving a request in writing from an owner, is to provide the owner with a copy of estimated costs and the calculation of adjustments.[25]
An owner of land in a Development Contribution Area is required to make a Development Contribution in accordance with the applicable Development Contribution Plan. An owner's liability to pay the owner's Development Contribution to the Authority arises on the earlier of ... .[26]
(1) If an owner objects to the amount of a cost contribution, the owner may give notice to the Authority requesting a review of the amount of the cost contribution by an appropriate qualified person ('independent expert') agreed by the Authority and the owner at the owner's expense, within 28 days after being informed of the cost contribution.
(2) If, following a review, the valuer's determination of the value of the cost contribution is still not a figure acceptable to the owner, the value is to be determined:
(a) by any method agreed between the Authority and the owner; or
(b) if the Authority and the owner cannot agree, the owner may apply to the State Administrative Tribunal for a review of the matter under part 14 of the Planning and Development Act 2005.[27] (emphasis in the original)
1.18 From the preceding paragraphs and based on available information regarding estimated and actual costs at the time, I consider that if a competitive open market tender process had been pursued for the Ranford Road project -
a) The total 'unsubsidised' construction cost could have plausibly been reduced from $11,684,810 to $7,900,968 (per paragraph 1.16 earlier), representing a potential saving of $3,783,842; and
b) If the estimated cost of one carriageway ($3,002,368 - paid for by the City's $2.7M contribution and an additional $302,368 of non-DCS funding) were deducted from the assumed (reduced) project cost of $7,900,968 then the 'subsidised' cost for the Ranford Road project could have been $4,898,600 representing a potential saving to the DCS of $4,086,210 (calculated as $11,684,810 - $2,700,000 - $4,898,600).[37] (emphasis in the original)
2.5 In section 3.3, paragraph f) of my [March 2023 Report], I expressed the opinion that the acquisition cost for the Ranford Road regional road reservation ought to have been borne by the City of Armadale and/or the Metropolitan Region Improvement Fund (MIRF) in the amount of $5,005,350.
2.6 If the DCS were not charged for the regional road reservation acquisition costs mentioned in the two preceding paragraphs, then I consider the potential saving to the DCS would have ranged from $4,216,507 to $5,005,350.[38] (emphasis in the original)
Consideration of the scope of a Review under cl 7.11(1)
7.3 DEVELOPMENT CONTRIBUTION PLANS
...
(2) The Authority may seek expert advice and/or stakeholder input in identifying appropriate Development Costs for the Area as considered appropriate by the Authority.
...
(4) The Development Contribution Plan may specify:
...
(c) the Development Costs from the list in clause 7.4 (the works and dollar value) that are required in the Contribution Area and that will be partly or fully funded by the Contribution Plan;
(g) any Development Costs or other associated costs and expenses that will not be charged to owners, including any costs that have received Federal Government funding;
...
...
7.4 DEVELOPMENT COSTS
(1) Development Costs that may be included in a Development Contribution Plan may include all costs associated with providing or improving any one or more of the following for the relevant Development Contribution Area:[80]
(a) Need and nexus
(b) Efficiency and certainty
(c) Equity and consistency
(d) Transparency and accountability
(e) Right of consultation and comment.[89]
The DCP consists of one Development Contribution Area (DCA) within which all landowners with developable land will contribute equitably through payment of a cost contribution represented by a square metre rate.[90] (emphasis added)
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] The Scheme is 'JCWS-1' to the affidavit of Mr J C W Skinner, made and filed 29 August 2024 (Skinner affidavit).
[2] The Former Scheme is 'MKR-1' to the affidavit of Mr M K Ryan, made and filed 4 October 2024 (Ryan affidavit).
[3] Skinner affidavit [8]; The DCP is 'MKR-9' at page 249 of the Ryan affidavit.
[6] See Appendix 2 'Cost Apportionment Schedule' to the DCP at 'MKR-9' at page 264 of the Ryan affidavit.
[9] The March 2023 Report is 'JCWS-4' at page 175 of the Skinner affidavit.
[10] The October 2023 Supplement is 'JCWS-5' at page 210 of the Skinner affidavit.
[13] See the October 2023 Supplement at 'JCWS-5' at page 216 of the Skinner affidavit: Table 3, row 12 column F.
[14] That deed is 'JCWS-7' at page 220 of the Skinner affidavit.
[15] That deed is 'JCWS-8' at page 244 of the Skinner affidavit.
[16] Originating Summons filed 29 August 2024.
[18] 'JCWS-1' at page 111 of the Skinner affidavit.
[20] 'JCWS-1' at page 28 of the Skinner affidavit.
[21] 'MKR-9' at page 254 of the Ryan affidavit.
[22] 'MKR-9' at page 255 of the Ryan affidavit.
[23] Appendix 2 to the Scheme: 'JCWS-1' at page 147 of the Skinner affidavit applied to the DCP by cl 7 in 'MKR-9' at page 262 of the Ryan affidavit.
[24] 'MKR-9' at page 253 of the Ryan affidavit.
[25] 'JCWS-1' at page 114 of the Skinner affidavit.
[26] 'JCWS-1' at page 117 of the Skinner affidavit; and see [26] above as to the occurrence of the trigger.
[27] See 'JSCW-1' at page 118 of the Skinner affidavit.
[28] See table 3 in the October 2023 Supplement at page 216 of the Skinner affidavit, row 1 of Column A.
[29] See Appendix 2 - Cost Apportionment Schedule to the DCP at 'MKR-9' at page 264 of the Ryan affidavit.
[30] Table 3 to the October 2023 Supplement at page 216 of the Skinner affidavit, row 1 of Column A.
[31] Table 3 to the October 2023 Supplement at page 216 of the Skinner affidavit, row 2 of Column B.
[32] Table 3 to the October 2023 Supplement at page 216 of the Skinner affidavit, row 3 of Column D.
[33] Table 3 to the October 2023 Supplement at page 216 of the Skinner affidavit, row 1 of Column F.
[34] Table 3 to the October 2023 Supplement at page 216 of the Skinner affidavit, row 5 of Column F.
[35] Table 3 to the October 2023 Supplement at page 216 of the Skinner affidavit, row 11 of column F.
[36] Table 3 to the October 2023 Supplement at page 216 of the Skinner affidavit, rows 10, 11, 12 of Column F.
[37] 'JCWS-5' at pages 213 - 214 of the Skinner affidavit.
[38] 'JCWS-5' at page 215 of the Skinner affidavit.
[39] See Row 6 'Estimated Redevelopment Cost' in Table 3 of the October 2023 Supplement at page 216 of the Skinner affidavit.
[43] Australian Unity Property Ltd v City of Busselton [2018] WASCA 38; (2018) 237 LGERA 333 (Buss P, Murphy and Mitchell JJA): Plaintiffs' outline of submissions filed 17 December 2024 [7]; defendant Authority's submissions filed 31 January 2025 [6].
[44] City of Gosnells v Reid [2024] WASCA 155.
[45] Australian Unity Property Ltd v City of Busselton [77]; City of Gosnells v Reid [147(1)] (Buss P and Vandongen JA).
[46] Australian Unity Property Ltd v City of Busselton [79].
[47] City of Gosnells v Reid [147(2)] (Buss P and Vandongen JA).
[48] Australian Unity Property Ltd v City of Busselton [81].
[49] Australian Unity Property Ltd v City of Busselton [82].
[50] Australian Unity Property Ltd v City of Busselton [83].
[51] Australian Unity Property Ltd v City of Busselton [85].
[52] Australian Unity Property Ltd v City of Busselton [84].
[53] Australian Unity Property Ltd v City of Busselton [84]; City of Gosnells v Reid [147(6)] (Buss P and Vandongen JA).
[54] See, for example, cl 1.11(1) of the Scheme: 'JCWS-1' at page 21 of the Skinner affidavit.
[55] Plaintiffs' outline of submissions filed 17 December 2024 [51].
[56] Plaintiffs' outline of submissions filed 17 December 2024 [54].
[57] Plaintiffs' outline of submissions filed 17 December 2024 [55] - [56].
[58] ts 38: Although it is to be noted that 'value' does not appear in cl 7.11(1) of the Scheme.
[59] Plaintiffs' outline of submissions filed 17 December 2024 [57].
[60] Plaintiffs' outline of submissions filed 17 December 2024 [58].
[61] Plaintiffs' outline of submissions filed 17 December 2024 [59].
[62] Plaintiffs' outline of submissions filed 17 December 2024 [60].
[63] Plaintiffs' outline of submissions filed 17 December 2024 [61] - [66].
[64] Plaintiffs' outline of reply submissions filed 26 February 2025 [14].
[65] Defendant Authority's submissions filed 31 January 2025 [32]; ts 56.
[67] Defendant Authority's submissions filed 31 January 2025 [33].
[68] Defendant Authority's submissions filed 31 January 2025 [34]; see also plaintiffs' outline of submissions filed 17 December 2024 [53].
[69] Defendant Authority's submissions filed 31 January 2025 [24].
[70] Defendant Authority's submissions filed 31 January 2025 [35].
[73] 'MKR-9' at page 259 of the Ryan affidavit.
[74] Defendant Authority's submissions filed 31 January 2025 [40]; ts 54.
[76] cl 7.12(1)(b) of the Scheme; 'JCWS-1' at page 118 of the Skinner affidavit; ts 54.
[77] cl 7.12(1)(c) of the Scheme; 'JCWS-1' at page 118 of the Skinner affidavit.
[78] cl 7.12(1)(d) of the Scheme; 'JCWS-1' at page 118 to the Skinner affidavit; Defendant Authority's submissions filed 31 January 2025 [40(b)].
[80] 'JCWS-1' at pages 112 - 113 of the Skinner affidavit.
[81] 'JCWS-1' at page 147 of the Skinner affidavit.
[82] 'JCWS-1' Appendix 2 of the Scheme at page 147 of the Skinner affidavit applied to the DCP by cl 7 in 'MKR-9' at page 262 of the Ryan affidavit.
[83] 'MKR-9' at page 255 of the Ryan affidavit; as quoted in [24] above.
[84] 'JCWS-1' at page 114 of the Skinner affidavit.
[88] And, I note the observations by the Court of Appeal in Australian Unity Property Ltd v City of Busselton as quoted above that planning schemes are not usually drafted by Parliamentary counsel.
[89] 'JCWS-1' page 112 of the Skinner affidavit.
[90] 'MKR-9' at page 256 of the Ryan affidavit. See the plaintiffs' submissions filed 17 December 2024 [62], [65].
[91] Appendix 2 to the Scheme: 'JCWS-1' at page 147 of the Skinner affidavit applied to the DCP by cl 7 in 'MKR-9' at page 262 of the Ryan affidavit.
[92] cf Australian Unity Property Ltd v City of Busselton [85].
[93] Plaintiffs' submissions filed 17 December 2024 [59], [60]. See also the provisions of the Former Scheme set out in those submissions at [29] - [39].
[94] See the defendant Authority's submissions filed 31 January 2025 [51] - [58].
[95] The plaintiffs accepted that the Scheme provisions now are very different from those in the Former Scheme: ts 35; see also the defendant Authority at ts 68.
[96] See the plaintiffs' submissions at ts 42 - 46; and the defendant Authority's acceptance that there had been some copying and pasting between SPP 3.6 and the Scheme but other things which were not: ts 69 - 70.
(2018) 237 LGERA 333