New Customer Contribution (NCC)

A charge that applies to a new subdivision or separate occupancy development

NCC Charges

The following charges will apply to each lot or separate occupancy in the relevant water or wastewater system.

Each system includes outlying areas of the main townships.

For example:

  • Moe/Newborough systems include Yallourn, Yarragon and Trafalgar
  • Sale systems include Wurruk and Fulham
  • Morwell systems include Churchill and Boolarra

This list is not exhaustive. You can contact us on (03) 5175 7488 to determine which system charge may apply to your subdivision or development.

Water system Charge Wastewater system Charge
Warragul/Drouin $4,234.56  Warragul/Drouin $2,984.47 
Moe/Newborough $2,843.09  Moe/Newborough $2,843.09 
Traralgon $3,268.00  Traralgon $1,241.28 
Morwell $3,790.29  Morwell $234.39 
Sale $501.45  Sale $667.76 

GST of $0.00 is applicable to these fees.

Questions and answers

Yes, but you will not be charged for an existing title if you receive a bill from us.

Each separate occupancy, regardless of its size or use, will incur the full rate NCC charge. The charge is the same for individual units, houses, warehouses, factories, offices and shops. Examples:

  1. If you’re developing one title with four residential dwellings or four industrial lots, you’ll be charged for three water NCCs and three wastewater NCCs.
  2. If you’re adding a second dwelling, you will be charged one water NCC and one wastewater NCC.
  3. If you are developing two titles with four dwellings, you will be charged for two applicable NCCs.

Separate occupancy (sometimes known as 'infill') development will be charged a full NCC per each separate occupancy.

Each separate occupancy, regardless of its size or use, will incur the full rate NCC charge. You will not be charged for the one existing occupancy if you receive a bill from us.

Yes, for greenfield development we will invoice you for NCC payments. The invoice is issued at the developer or developer representative’s request and must be paid prior to a Statement of Compliance.

The charge came in place from 1 July 2023.

For greenfield development: an NCC will be applied to a Deed of Agreement for construction of water and/or wastewater works issued after 30 June 2023.

For infill development (eg second dwelling or construction of units) there is some flexibility:

  • If we received a quote request with approved/endorsed planning permit plans prior to 30 June 2023, NCCs will not be applied. Plans must be stamped/endorsed by Council. Fees must be paid by 30 June 2024. To apply go to our connections page
  • Quotes already issued within the 2022-23 financial year but still unpaid by 30 June 2023 will be updated to include up to date installation and application fees, but they will not include NCCs. Fees must be paid by 30 June 2024. To update your quote please email propertyconnections@gippswater.com.au
  • NCCs apply to quotes for water and/or wastewater service connections after 30 June 2023.

For greenfield development: an NCC will not be charged if you paid the fees set out in your Deed of Agreement and you complete all construction within 12 months.

For infill development (eg second dwelling or construction of units): an NCC will not be charged if you paid all fees.

For greenfield development, an NCC will not be applied if the following requirements were met before 1 July 2023:

  • Your consultant has submitted a Form 1 with a Plan of Subdivision and an acceptable design for construction of water and wastewater works to obtain a Deed of Agreement.
  • You paid the fees as set out in the Deed of Agreement.
  • All construction is complete within 12 months as set out in the Deed of Agreement.

For infill development (eg second dwelling or construction of units):

  • If we received a quote request with approved/endorsed planning permit plans prior to 30 June 2023, NCCs will not be applied. Plans must be stamped/endorsed by Council. Fees must be paid by 30 June 2024.

    To apply go to our connections page.

  • Quotes already issued within the 2022-23 financial year but still unpaid by 30 June 2023 will be updated to include up to date installation and application fees, but they will not include NCCs. Fees must be paid by 30 June 2024.

    To update your quote please email propertyconnections@gippswater.com.au

  • NCCs will be applied to quotes for water and/or wastewater service connections after 30 June 2023.

We used an Average Incremental Cost (AIC) model that identifies capacity related expenditure and averages this expenditure over growth-related development.

Standard AIC NCC’s are based on a present value calculation of the average cost of servicing growth per new connection over a 20 year period. In simple terms, the model considers the expenditure over the next 20 years for water and wastewater assets required to manage continued growth.

It then provides a present value of the calculation to each new connection.

As the capital expenditure is different for water and wastewater, and is different in the various growth centre towns, the calculation of the new customer contributions are a reflection of the specific calculation for each service in each town.

NCCs are based on a present value calculation of the average cost of servicing growth per new connection over a 20 year period for each system in that town, using a Standard Average Incremental Cost (AIC) model.

When we considered the introduction of new customer contributions we also considered the prudency of capping the total quantum charged per lot to manage the impacts on the final sale price of land.

To this end, we have limited new customer contributions to no more than 3.5% of the average cost of an average lot of land in each system. This has resulted in the new customer contributions for Moe Newborough being capped.