Who pays the NBN New Development Fee and what is it for?

The NBN New Development Charge was announced in April 2015 by the Australian government. It is a fee that is applicable to properties that are deemed a new development. What this means is NBN Co are charging brand new properties to connect to the NBN for the very first time.

The New Development Charge is made up of a developer contribution and an end user contribution. When a new property is developed the developer must pay NBN to connect to the new building. This is the developers contribution and comes at a price of $600. The end user contribution comes when the home owner or tenant comes to order a service with a retail service provider (RSP). The RSP will likely advise that the New Development Cahrge is applicable and request for payment of this prior to getting connected. The end user contribution is $300 inc GST and would come on the RSP’s invoices.

The end users contribution often comes a quite a surprise for a tenant who is renting a brand new property who expects to be able to get connected to the NBN quickly, efficiently and for free – as most of properties can. What tenants should do is consult their landlord or owner of the property. Usually the owner will take responsibility for the end user contribution as connecting their property to the NBN is beneficial to them and everyone in this day and age requires access to the internet.

Prior to April 2015 the New Development Charge did not apply but it is now common place amongst new apartment developments, new house and new housing estates that are connecting to the NBN.

In new apartment buildings NBN Co often complete what is called pre-installation. This is where they will install the NBN equipment prior to the development being completed. Often in new apartment developments they install equipment ready for FTTP (fibre to the premises) NBN. This makes connection to the NBN very quick and easy. Often it can be activated remotely on the same day. All is needed is an NBN ready modem to connect to the pre-installed NBN equipment.

If you are an end user and looking for a way to avoid the NBN New Development charge, unfortunately it is not possible. It is very similar to the costs of connecting a traditional copper telephone service. Some RSPs may offer a solution to paying off the $300 inc GST charge over the course of 3 months. This is a special request and RSP Tangerine Telecom does offer this solution. For further information on the NBN New Development Charge you can check the NBN Co website for a full explanation.

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