New customer contributions, sometimes known as 'developer charges', are levied by water businesses when new customers connect to the existing water, sewerage and recycled water networks.
New customer contributions guiding resources
Overview
New customer contributions (also known as developer charges) are one-off, upfront charges that water businesses may levy when a new property connects to water, sewerage or recycled water services, or when the capacity of an existing connection is increased.
The New Customer Contributions Framework provides for two types of charges, standard and negotiated new customer contributions.
Standard new customer contributions only apply where infrastructure needs and growth are well understood and documented. This allows the commission to approve common charges for eligible connections within defined areas and connection characteristics.
Negotiated new customer contributions may be agreed in any circumstances, including where a standard new customer contribution is applicable. They may also be used where developments fall outside standard eligibility criteria, or where developments are larger or more complex. Any negotiated new customer contribution must comply with the binding new customer contribution pricing principles and be agreed in accordance with a water business’ approved negotiating framework set out in its approved connection policy.
The updated New Customer Contributions Framework
We released our updated New Customer Contributions Framework in January 2026, to support water businesses in proposing and administering new customer contributions for subsequent regulatory periods.
Following its release, we worked with industry to develop guiding materials, including an illustrative New Customer Contributions model and User guide in August 2026, and NCC case studies guide in September 2026.
The case studies demonstrate common issues, considerations and decision-making challenges water businesses may encounter when planning, assessing and delivering growth-related infrastructures for new development areas, and how to apply the Framework.
The NCC model can be used by water businesses in calculating NCCs in a range of circumstances, and by connection applicants seeking to perform due diligence on the reasonableness of proposed NCC charges.
The provisions in the materials are consistent with the requirements of the NCC Framework and are intended to aid compliance with the NCC pricing principles.