There is a widespread misunderstanding about how the Housing and Productivity Contribution applies to CDC duplex projects, and it is costing applicants money and causing real project delays.
The short version: under the latest EP&A (Housing and Productivity Contribution) Order 2024, the HPC for a CDC dual occupancy is not captured at the subdivision stage. It is captured at the Building CDC stage, and it must be paid before commencement of works. A Subdivision Certifier issuing a Subdivision CDC for a dual occupancy lodged on or after 1 July 2024 should not be adding an HPC condition to that application at all.
This is confirmed by the NSW Department of Planning and Housing (DPHI). Yet across NSW, many Building CDC’s have incorrect or missed HPC conditions. This error can cause issues to the applicant: one through missed obligations, the other through higher charges and delays.
This article explains exactly how the HPC applies to CDC duplexes, what changed in July 2024, and what is currently going wrong on the ground.
The Two Orders: What Changed in July 2024
The Housing and Productivity Contribution operates under two instruments:
The EP&A (Housing and Productivity Contribution) Order 2023 applies to applications lodged on or after 1 October 2023 and before 1 July 2024. Under the 2023 Order, HPC for dual occupancy subdivision was triggered at the subdivision application stage.
The EP&A (Housing and Productivity Contribution) Order 2024 replaced it for all applications lodged on or after 1 July 2024. This is where the critical change happened.
Under the 2024 Order, the HPC for medium and high-density housing which includes CDC dual occupancy, is not captured at the subdivision stage. It is captured at the Building CDC stage, before construction commences. The 2024 Order also removed strata subdivision entirely from the HPC framework, which is covered separately below.
Both orders cover the same four regions: Greater Sydney, Illawarra-Shoalhaven, Lower Hunter and Greater Newcastle, and Central Coast. Rates are indexed quarterly. The transitional discounts from the 2023 Order have expired. Full contribution rates apply to all applications lodged from 1 July 2025.
The Order Wording and Where the Confusion Comes From
It is worth being direct about this: the 2024 Order is not entirely straightforward to read, and the confusion that has arisen across the industry is understandable.
The Order defines residential development to include both residential subdivision (Clause 5(2)(a)) and medium or high-density residential development (Clause 5(2)(b)). Dual occupancy sits under the medium or high-density category. Clause 6(1) then extends HPC requirements to CDCs. Read in isolation, it is possible to interpret the scheme as applying separately at both the Building CDC stage and the Subdivision CDC stage.
The clarification came through direct correspondence with DPHI in July 2024. An infrastructure planning officer at the Department confirmed that “the HPC as it applies under the 2024 HPC Ministerial Order generally does not capture any kind of residential development at the subdivision stage, other than non-strata subdivision that would generally result in a new empty lot with no proposed works.” For CDC dual occupancy projects, the lots created at subdivision are excluded lots under Clause 12, they carry medium or high-density development, which is a defined exclusion, and the contribution has already been captured at the construction stage.
That clarification is what the industry needed. The Department has acknowledged the ambiguity and has indicated that future amendments to the Order and Portal improvements are being considered to make the position clearer.
Where HPC Is Captured Under the 2024 Order
For a CDC dual occupancy project where the Building CDC was lodged on or after 1 July 2024, the HPC condition belongs on the Building CDC, not the Subdivision CDC.
Under Clause 20(2) of the 2024 Order, the HPC must be paid before the commencement of any work authorised by the building CDC. This is the default rule for all CDCs. Payment is not due at the subdivision stage. It is not due at the Subdivision Certificate stage. It is due before the first tradesperson sets foot on site to commence construction.
This timing matters for project budgeting and programming. The HPC is a live cost at the building stage, not a deferred cost at the end of the project. Applicants who are not told this upfront often find themselves managing an unexpected payment obligation right at the point they want to start building.
The Subdivision Certifier assessing the Subdivision CDC for a completed or approved dual occupancy should not be imposing a further HPC condition. The lots being subdivided already carry medium or high-density development. Under the Order’s treatment of excluded lots, the contribution has already been captured or does not apply at subdivision.
The Two Scenarios You Need to Know
Scenario 1: Building CDC lodged before 1 July 2024, Subdivision CDC lodged after
If the building CDC was lodged between 1 October 2023 and 30 June 2024, and the subdivision CDC is lodged after 1 July 2024, DPHI has confirmed the HPC does not apply at the subdivision stage for this project.
Scenario 2: Building CDC and Subdivision CDC both lodged on or after 1 July 2024
The HPC is captured at the Building CDC stage. The Building Certifier must impose the HPC condition on the building consent with payment required before commencement of works under Clause 20(2). The Subdivision CDC carries no separate HPC condition.
How the HPC Is Calculated and What It Costs
Understanding the calculation matters, particularly because the rate that applies at the Building CDC stage is different from the rate that applies to subdivision. Getting HPC captured correctly at the building stage is not just the right outcome under the Order: it is also the cheaper outcome for the applicant.
The base rates under the 2024 Order (Clause 7)
For Greater Sydney:
- Medium or high-density residential development (including dual occupancy): $10,000 per new dwelling
- Residential subdivision (non-strata): $12,000 per new dwelling lot
For Central Coast, Illawarra-Shoalhaven, and Lower Hunter:
- Medium or high-density residential development: $6,000 per new dwelling
- Residential subdivision: $8,000 per new dwelling lot
These are the initial amounts set from 1 October 2023. They are indexed quarterly using the Producer Price Index (Road and Bridge Construction NSW). At the time of writing (April 2026), the indexed rates will be higher than the base figures — check the NSW Planning Portal for the current quarter’s rate before calculating your project cost.
As a reference point, the Department’s worked examples published in July 2024 showed an indexed rate of $10,493.11 per new dwelling and $12,591.73 per new lot for Greater Sydney. Rates have continued to be indexed since then.
Credits: existing potential dwelling lots and excluded lots
The Order provides credits that reduce the HPC charge where development is being carried out on a lot that already has residential accommodation or carries an existing potential dwelling entitlement. These are defined in the Order as existing potential dwelling lots and excluded lots.
For a dual occupancy Building CDC (Clause 13), where the existing house on a lot is being demolished to construct a duplex, the original lot is treated as an existing vacant lot under Clause 13(7)(b), because the development consent authorises demolition. This means the number of new dwellings is reduced by one, reflecting the credit for the original lot.
Worked example: standard CDC dual occupancy, Greater Sydney, knockdown-rebuild
Proposed development: construction of a dual occupancy (attached) on a lot currently containing one dwelling house, to be demolished.
Using the Department’s worked example methodology (Housing and Productivity Contributions: Worked Examples):
Correct outcome — HPC at Building CDC stage:
| Item | Detail |
|---|---|
| Proposed | 2 dwellings (dual occupancy) |
| Existing lot credit (Cl. 13(7)(b)) | 1 existing lot (house to be demolished) |
| Net new dwellings | 1 |
| Base rate | $10,000 per new dwelling |
| Indexed rate (approx. July 2024) | $10,493 |
| Payment due | Before commencement of works |
Incorrect outcome — HPC applied at subdivision stage instead:
| Item | Detail |
|---|---|
| Proposed | 2 new lots (Torrens subdivision) |
| Existing potential dwelling lot credit | 1 (original lot) |
| Net new lots | 1 |
| Base rate | $12,000 per new lot |
| Indexed rate (approx. July 2024) | $12,592 |
| Payment due | Before Subdivision Certificate |
The difference at July 2024 rates: approximately $2,100 more expensive if applied at subdivision. By the time indexation is applied at current 2026 rates, that gap will be wider.
And that is before accounting for the delays. If HPC has not been correctly imposed and paid on the building CDC, and this only surfaces at the Subdivision Certificate stage, the applicant faces an unresolved contribution obligation at the point they most need to move. Registration cannot proceed until the position is regularised. That takes time, which costs money.
Getting the HPC captured correctly at the Building CDC stage, before commencement of works is the right outcome legally, financially, and practically.
What Is Going Wrong: Not Applying HPC Correctly
The systemic problem in the industry right now is not at the subdivision stage. It is at the Building CDC stage.
Under the 2024 Order, the Building certifier must impose the HPC condition on the Building CDC and create a contribution (CON) case on the NSW Planning Portal. The CON case must be set with the correct payment trigger: before commencement of works under Clause 20(2). In practice, two issues are emerging regularly.
Issue 1: The CON case is not being created at all
Where duplex Building CDCs are issued without creating a CON case for the HPC. The obligation does not disappear. The applicant remains liable. The contribution obligation attaches to the development regardless of how the condition was set up, and it will surface when least expected.
Issue 2: The wrong payment trigger is being set
Where a CON case is created, the payment timing is sometimes still being set as “Prior to Subdivision Certificate”, importing the old 2023 Order logic. Under the 2024 Order, for a standalone Building CDC for a dual occupancy, the correct trigger is prior to commencement of works. Setting the wrong trigger means the applicant and everyone downstream operates on incorrect information about when and to whom the obligation is owed.
The Department was formally put on notice about these systemic issues in late 2025. DPHI acknowledged the shortcomings in writing and confirmed that Portal improvements and future Order amendments are being worked on. Those improvements are not yet in place.
Who Is Responsible for Missed Payments?
DPHI has been clear in correspondence: the applicant is ultimately responsible for the HPC. The obligation runs with the development.
The condition must be correctly imposed on the building CDC. Where that does not occur, the obligation does not disappear, it becomes a problem the applicant then has to resolve. If the HPC was not correctly imposed or paid on the building CDC, the applicant will need to work with the Department to regularise the position before the project can proceed to registration.
The HPC scheme exists to fund regional and state infrastructure that supports housing delivery. Applying it correctly, at the right stage, at the right rate, is part of what registered practice requires. Where conditions are missed or incorrectly set, the downstream consequences are real, and they land on the applicant.
Strata Subdivision: Completely Outside the HPC Framework
Under the 2024 Order, strata subdivision has been removed from the HPC entirely. This applies to both CDC strata and DA strata pathways.
If your project involves strata subdivision rather than Torrens title subdivision, the HPC does not apply under the 2024 Order. This is a significant change from the 2023 Order and represents a genuine cost saving for strata projects lodged from 1 July 2024.
For more on the CDC pathway for strata projects, see Strata Certificate requirements.
Geographic Coverage and Exempt Areas
The HPC applies in four regions: Greater Sydney, Illawarra-Shoalhaven, Lower Hunter and Greater Newcastle, and Central Coast. These regions are identified on the HPC Regions Map approved with the Order. Clause 4 of the Order confirms the regions, with a note that the Western Sydney Growth Areas and Western Sydney Aerotropolis special contributions areas are not included.
Two significant areas within Greater Sydney are currently excluded: the Western Sydney Growth Areas and the Western Sydney Aerotropolis Special Infrastructure Contributions area. These operate under separate Special Infrastructure Contributions schemes and are excluded from the HPC framework until 1 July 2026, at which point they are expected to transition into the HPC framework.
The Western Sydney Growth Areas include the major North West and South West growth precincts under the Growth Centres SEPP, including Box Hill, Marsden Park, Schofields, Leppington, and surrounding precincts. If your project is in one of these areas, confirm the applicable contributions framework before proceeding on HPC assumptions.
Where Projects Are Going Wrong
Conditioning HPC at subdivision for 2024 Order dual occupancy projects
This is the most common error. Under that Order, HPC is not captured at subdivision for these projects. An applicant whose Certifier correctly imposed the HPC at the Building CDC stage should not face it again at subdivision. An applicant facing it only at subdivision, because the Building CDC missed it, is being put in a more expensive and more complicated position than the law requires.
Not creating the CON case on the Building CDC at all
Where the CON case is left unattended on these duplex developments, the obligation does not disappear, it defers a problem that will eventually land on the applicant at some point.
Setting the wrong payment trigger on the CON case
Payment due “prior to Subdivision Certificate” is the wrong trigger for a Building CDC under the 2024 Order. The correct trigger is prior to commencement of works under Clause 20(2). This is not a technicality, it determines when the cash must be found and fundamentally affects project programming.
Treating strata and Torrens title subdivision identically
Since the 2024 Order, these are very different. Strata subdivision is outside the HPC framework. Torrens title subdivision of vacant lots still attracts HPC at the subdivision stage. Running the same process for both project types produces errors.
Frequently Asked Questions
If my dual occupancy Building CDC was lodged under the 2023 Order, do I still pay HPC at the subdivision stage?
No. DPHI has confirmed that where HPC was governed by the 2023 Order at the building stage, the 2024 Order does not re-capture the contribution at subdivision. Confirm with your certifier that the CON case was correctly set up and managed on the building CDC.
How much will HPC cost for a typical CDC dual occupancy in Greater Sydney?
For a standard knockdown-rebuild dual occupancy, the calculation typically results in one net new dwelling after credits are applied for the existing lot. At the July 2024 indexed rate, that was approximately $10,493. The rate is indexed quarterly and will be higher by the time you read this. Check the NSW Planning Portal for the current quarter’s rate. For a full worked example, refer to the Department’s Worked Examples document.
When exactly does HPC need to be paid on a building CDC?
Under Clause 20(2) of the 2024 Order, payment must be made before the commencement of any work authorised by the CDC. This means before any construction activity begins on site, not at the subdivision stage, not at practical completion. If the HPC condition has not been imposed and the CON case has not been set up before construction commences, the obligation still exists and will need to be regularised.
What if the Certifier never created a CON case for the HPC on my building CDC?
The obligation does not disappear because the CON case was not created. The applicant remains ultimately responsible under the Order. If you arrive at subdivision and the HPC position on the Building CDC is unclear or unresolved, you will need to work with the Department to address it. Start early. This is not something that resolves quickly.
Does HPC apply to my CDC strata subdivision?
No. Strata subdivision (both CDC and DA) is completely outside the HPC framework under the 2024 Order.
Is the Western Sydney Growth Areas exclusion from HPC permanent?
No. The exclusion runs until 1 July 2026, as confirmed in the Note to Clause 4 of the Order. Projects in those areas are currently subject to the applicable Special Infrastructure Contributions scheme. From 1 July 2026, the transition into the HPC framework is expected to take effect.
Get the Right Advice Before You Lodge
The HPC framework has changed significantly since October 2023. The wording of the 2024 Order has caused genuine confusion across the industry, and the Planning Portal has not kept pace with the legislative change. The result is that the HPC is regularly not being applied correctly, and applicants are paying the price, either through missed obligations or through being incorrectly charged at the subdivision stage at a higher rate and at the worst possible time.
If you are planning a CDC dual occupancy in Greater Sydney or a covered regional area, confirm which Order governs your project, where HPC is captured, when payment is due, and whether your CON case has been setup correctly before construction commences.
Southwell Certifiers works across metropolitan Sydney and regional NSW on CDC duplex subdivision projects. We can confirm your HPC obligations as part of an early project assessment, identify any CON case issues before they become problems, and advise on the correct pathway for both the building and subdivision stages.
To discuss your project and receive a no-obligation fee proposal, contact us on (02) 8734 5676, email admin@southwellcert.com.au, or request a fee proposal at southwellcert.com.au/fee-proposal.
Contribution rates are indexed quarterly. This article draws on the EP&A (Housing and Productivity Contributions) Order 2024, direct correspondence with NSW DPHI, and the Department’s published Worked Examples, and reflects the position as at April 2026. Confirm current rates and portal procedures through the NSW Planning Portal before finalising project decisions. This article provides general guidance only and does not constitute legal or financial advice.
