What is cash-in-lieu (CIL) for residential subdivisions?

    Development Control Policy 2.3 states that for residential subdivision, 10% of the gross subdivisible area shall be given up free of cost by the subdivider for public open space purposes. This has been the basis of the Commission's public open space policy and practice in the State for many years and follows the recommendations of the Stephenson/ Hepburn Plan for the Metropolitan Region in 1955. Subdivision applications over a certain number of lots are required to provided 10% public open space contribution, in some instances this may be provided as cash-in-lieu of providing the actual physical land. The cash-in-lieu held by the local government must be spent on reserves in the locality in which the funds were obtained.

    Will the City of Kalamunda make the full decision for how the CIL funds are spent?

    For the funds to be used, the local government must submit a request to the Minister for Planning. The Minister for Planning must sign off on the request for the funds to become available. There is a criteria for what the funds can be spent on.

    Pursuant to Section 154 (2) (c) of the Planning and Development Act (2005), the cash in lieu funds held by a local government may, with the approval of the Minister, be applied for the improvement or development of parks, recreation grounds or open spaces generally of any land in that locality vested in or administered by the local government.

    Planning Bulleting 21 – Cash-in-lieu of Public Open Space states that requests to the Minister should be accompanied by a map and schedule showing: 

    1. The location and WAPC reference number from the subdivision from which the funds were obtained;
    2. The dollar value of the funds obtained from the subdivision;
    3. The location of the proposed reserve where the funds are proposed to be expended;
    4. The nature of the proposed expenditure; and
    5. The program for the expenditure of the funds.

    What happens if the provision of land made available for Public Open Space is not practical?

    In some circumstances the provision of an area of land for public open space is not practical and it may be more appropriate for cash-in-lieu of public open space to be given for the following reasons:

    • in small subdivisions, the provision of public open space may result in a small unusable area of land being set aside;
    • there may be sufficient public open space already available in the locality;
    • public open space may have been provided in earlier subdivisions; or
    • open space is planned in another location by way of a town planning scheme or local structure plan.

    How is the CIL value determined?

    The value of cash-in-lieu is determined as a percentage of the market value of the en globo land from which the subdivision occurs.

    How are the CIL funds received and held?

    Section 20C of the Town Planning and Development Act provides that cash-in- lieu funds received by a local government must be paid into a separate (trust) account. Under the Local Government Financial Management Regulations 1996, the account should clearly set out the purpose for which the money is held, the landholding from which it was obtained and the date on which is was paid to the local government. Cash-in-lieu funds may be used in the following manner:

    • for the purchase of land for parks, recreation grounds or open spaces generally, in the locality in which the subdivision is situated;
    • in repaying loans raised by the local government for the purchase of such land; or
    • with the approval of the Minister for Planning, for the improvement or development as parks, recreation grounds or open spaces generally of any land in the said locality vested in or administered by the local government for any of those purposes.

    What can the CIL funds be spent on?

    Acceptable expenditure for cash-in-lieu funds may be for:

    • clearing
    • seating
    • earthworks
    • spectator cover
    • grass planting
    • toilets
    • landscaping
    • change rooms
    • reticulation
    • lighting
    • play equipment
    • pathways
    • fencing
    • walk trails
    • car parking
    • signs relating to recreational pursuits

    What can the CIL funds NOT be spent on?

    Unacceptable Uses for Expenditure of Cash-in-Lieu Funds Use of cash-in-lieu would not normally be acceptable for:

    • community halls or indoor recreation centres
    • enclosed tennis courts
    • bowling greens for clubs
    • facilities for private clubs and similar facilities where access by the general public is restricted

    Where is Lincoln Road Reserve?

    Lincoln Road Reserve is located at lot 2560 (43) Cumberland Road, Forrestfield. The site is located adjacent to Edinburgh Road Activity Centre, Forrestfield Pre-Primary School and is bound by Lincoln Road, Cumberland Road and Carleton Crescent.

    Why has Lincoln Road Reserve been prioritised for upgrades through POS cash in lieu?

    As a general principle, the expenditure of funds accrued through public open space cash in lieu must be applied to public open space within the same locality (suburb) as the subdivision which occurred where the funds were obtained from. In this instance, the subdivisions from which the public open space cash in lieu funds were obtained from occurred in Forrestfield.

    Lincoln Road Reserve has been prioritised for upgrades within Forrestfield due to its centralised location and proximity to an activity centre allowing it to serve a broader catchment. Being located so close to an activity centre gives the reserve an opportunity to provide higher quality public open space to attract visitors from the reserve to the activity centre and vice versa, providing a benefit to a larger portion of the community.

    How much funding is available for upgrades to Lincoln Road Reserve?

    The City has accrued approximately $300,000 through public open space cash in lieu funding which is proposed to be expended on upgrades to Lincoln Road Reserve, Forrestfield.