R & R Fazzolari Pty Limited v Parramatta City Council; Mac's Pty Limited v Parramatta City Council

The High Court of Australia considered appeals from the Supreme Court of New South Wales in two related matters, *R & R Fazzolari Pty Limited v Parramatta City Council* and *Mac's Pty Limited v Parramatta City Council*. Both appellants sought to challenge decisions made by the Parramatta City Council concerning the imposition of development contributions under section 94 of the *Environmental Planning and Assessment Act 1979* (NSW). The core of the dispute revolved around the Council's calculation of these contributions, which the appellants argued were excessive and not properly authorised by the legislation.

The central legal issue before the High Court was whether the Parramatta City Council had acted lawfully in levying development contributions under section 94 of the *Environmental Planning and Assessment Act 1979* (NSW) in circumstances where the contributions were calculated based on a formula that included a component for "general community infrastructure" which the appellants contended was not a "local infrastructure item" as defined by the Act. The Court was required to determine the proper interpretation of section 94 and its associated regulations, specifically concerning the types of infrastructure for which development contributions could be levied and the methodology for calculating such contributions.

Gleeson CJ, delivering the judgment of the Court, reasoned that section 94 of the Act permits a local council to require a contribution towards the provision of local infrastructure that is rendered necessary by the proposed development. The Court found that the Council's inclusion of a component for "general community infrastructure" in its calculation was not authorised by the Act, as this category of infrastructure did not fall within the definition of "local infrastructure items" for which contributions could be levied. The Court emphasised that the power to levy development contributions is a statutory power that must be exercised strictly in accordance with the terms of the legislation.

The High Court allowed the appeals, finding that the development contributions levied by the Parramatta City Council were unlawful. The Court ordered that the decisions of the Council be quashed.