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About managing security bonds
Some large-scale developments require security bonds (a deposit or bank guarantee). These act as financial assurance that works and maintenance obligations will be completed.
The security is held by the department serving as a guarantee that:
- the holder of a controlled activity approval will fulfill their obligations to complete
- works rehabilitation and any specified maintenance required by the Approval is upheld
- the reporting requirements and conditions of the Approval have been met.
Bonds are often required for separate stages of a development. This allows individual security bonds to be released progressively as stages are completed.
If your controlled activity approval is amended or the scope of works changes, the department may update the required bond amount.
You can:
- lodge a security bond
- apply to release a security bond
- replace or amend a security bond.
Applications to manage a security bond are lodged on the NSW Planning Portal. You can also pay fees, upload additional information, and track your application’s progress. Read how to apply on the NSW Planning Portal.
Lodge a security bond
Security bonds must be paid prior to a controlled activity approval being issued.
During the assessment of an application for controlled activity approval, the department will identify if a Security Bond is required based on the extent of in-stream and riparian corridor works required for the development. If a security bond is required, the department will:
- inform the applicant and request detailed costings of the development works. These costings are used to determine the amount of a security bond.
- notify the applicant via the NSW Planning Portal of the amount of the security bond and any additional application fee
Find more information about security bonds in the ‘Security Bond details’ tab in your controlled activities approval application in the NSW Planning Portal.
How to lodge a security bond
Security bonds can be lodged with the department as a:
Bank guarantee
Note/s:
- all bank guarantees must be consistent with the department’s bank guarantee form
- use a separate bank guarantee for each individual security bond, if lodging more than one
Steps:
- provide the department’s bank guarantee form to your financial institution so it can prepare the bank guarantee
- send the completed bank guarantee/s and a cover letter to the department via registered post to Licensing and Approvals, Water Group of the department of Climate Change, Energy, the Environment and Water, Locked Bag 5022 Parramatta NSW 2124
- The cover letter must include the Application Reference Number of the associated controlled activity approval and the applicant’s address and contact details
Cash bond paid by either:
- Electronic Funds Transfer
- make payment using the below bank details:
ACCT HOLDER: DCCEEW – Water Operating Account
BANK: Westpac Bank Sydney
BSB: 032-001
ACCT: 187352 - Include the reference number of the associated controlled activity approval as the payment reference e.g. CAA-XXXX-XXXXX
- Email a copy of the Bank Transfer Receipt to waterlicensing.servicedesk@dpie.nsw.gov.au
- make payment using the below bank details:
- Bank cheque
- made to:
The Department of Climate Change, Energy, The Environment and Water – ABN 27 578 976 844 - send the bank cheque and a cover letter to the department via registered post to Licensing and Approvals, Water Group of the Department of Climate Change, Energy, The Environment and Water, Locked Bag 5022 Parramatta NSW 2124.
- The cover letter must include application reference – address and contact details
- made to:
Release a security bond
You can apply to release a security bond if:
- all works specified by the approval and defined in the works schedule for the security bond stage have been completed and a completion report prepared.
- works have not commenced and will not be commencing and you have surrendered your controlled activity approval.
The department will assess your application for release of a security bond. The department may inspect the completed works. If they are incomplete or non-compliant, you will be asked to undertake additional work. Additional inspection fees may apply.
How to release a security bond
- The application requires detailed information and supporting documents. A list of mandatory supporting documents is provided below. Read this information thoroughly and have the required information ready before you start your application.
- A separate application must be lodged for each security bond stage as specified in the Approval.
- Applications to release a security bond are on the NSW Planning Portal by clicking the button below. You can also pay fees, upload additional information, and track your application’s progress.
- If your security bond is not in the NSW Planning Portal, please contact water.enquiries@dpie.nsw.gov.au for further advice to make application.
Mandatory supporting documents
- A completion report prepared by an ecologist, landscaper and/or civil works contractor, detailing the completion of all works specified by the controlled activity approval including photos of implemented works and watercourse rehabilitation. The report must include:
- a schedule and map showing the vegetation species, number and location of initial and any replacement plantings and propagation materials, and
- the date of planting of vegetation, and
- the percentage cover of groundcover, shrubs, trees and weeds, and
- any problems that impacted the civil work or the survival rates of plants including climatic, fire, flooding and vandalism, and
- a map of the location of any staged activities, and
- photographs showing the civil and revegetation works during the reporting period.
- The security bond must be returned to the person or organisation/entity that lodged the original security bond. If there has been a change of company name since the security bond was paid, evidence must be lodged.
Application fees
| Approval type | Lodgement fee | Additional fees |
|---|---|---|
| Security bond release (inc. GST) | $474 | $156 per hour inspection fee where works are non-complian |
Fees are charged to cover the cost of assessing applications to release a Security Bond. Additional fees may be charged where the works are non-compliant with the conditions of the Controlled Activity Approval.
- You must pay an initial fee when lodging your application which the NSW Planning Portal will calculate this based on your application type. Additional fees may also be needed. If this is the case, the department will notify you via email.
- Application fees are non-refundable for change of mind or where an application is not granted or refused.
- More information at: Application fees
Assessment timeframe
Applications to manage a security bond take up to 80 working days.
More information at: Assessment timeframes
To check the status of an existing Security Bond Release application, if the assessment timeframe has passed, contact water.enquiries@dpie.nsw.gov.au to request an update.
Apply for a security bond release
Replace or amend a security bond
Security bonds must be replaced or amended if there is a change to the:
- Financial institution providing the security bond/s.
- Owner of the development works.
- Development staging and subsequent security bond stage amounts.
- Scope of works due to amending the development resulting in a subsequent change in the cost of implementation.
How to replace or amend a security bondÂ
- Contact water.enquiries@dpie.nsw.gov.au to advise the department that you need to replace or amend your security bond/s.
- Apply to amend your controlled activity approval.
- Provide the replacement security bonds when requested as part of the process to amend the controlled activity approval.
- After an amended controlled activity approval has been issued, lodge the application/s for release of the security bonds that you replaced. Refer to section on how to apply for a Security Bond Release above.
Application fees
Refer to the section on the fees for releasing a security bond above.
Assessment timeframes
Applications to manage a security bond take up to 80 working days.
More information at: Assessment timeframes
To check the status of an existing security bond application, if the assessment timeframe has passed, please contact water.enquiries@dpie.nsw.gov.au.
How to apply on the NSW Planning Portal
Applications for controlled activity approvals are lodged on the NSW Planning Portal. You can also pay fees, upload additional information, and track the progress of your application.
To lodge your application, follow the steps below:
- Register for a NSW Planning Portal account by visiting planningportal.nsw.gov.au and clicking ‘My Account’.
- Log in to the NSW Planning Portal
- Select ‘DPE-Water-Controlled Activity Approval' from the drop-down menu
- Press ‘Create New’
- Select the type of application you need:
- New approval
- Amended approval
- Extension approval
- Surrender
- Security bond release
- Select ‘Start application’ using the button in the bottom right corner.