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In April 2020, the Hon. Rob Stokes MP, Minister for Planning and Public Spaces, requested the NSW Productivity Commissioner undertake a review of the infrastructure contributions system and report back with recommendations for reform.
The Commissioner completed his Review’s Final Report in November 2020. The Report made 29 recommendations to deliver an efficient system that is easy to understand, is transparent and consistent in its application, and provides greater certainty to market participants.
Priority recommendations included:
- amending the local government rate peg to allow councils’ general rate income to increase with population
- section 7.11 local contributions plans based on efficient costs of delivering development-contingent infrastructure
- requiring local contributions plans be published prior to rezoning
- retaining the simplicity of section 7.12 levies for specific circumstances, but with a higher maximum rate for residential development
- introducing rigor in the application of section 7.4 planning agreements for both state and local infrastructure
- broad-based regional contributions in Greater Sydney, Central Coast, Hunter, and Illawarra-Shoalhaven to fund State infrastructure associated with development (replacing special infrastructure contributions plans)
- an additional transport infrastructure contribution, applied to new development capacity in the service catchments of major investments to help recover costs
- a cost reflective biodiversity contribution
- restoring cost reflective water charges for Sydney Water and Hunter Water
- simplifying the system with digital tools, benchmark costs, and standardised templates.
In March 2021, the NSW Government accepted all 29 recommendations.
The Environmental Planning and Assessment Amendment (Infrastructure Contributions) Bill was presented to Parliament in July 2021. Over September and October 2021, IPART published reports on amendments to the local government rate peg, benchmark costs, and review of the essential works list. Also, in October 2021, the Department of Planning, Industry and Environment (DPIE) published draft regulations and guidance material.
NSW Parliament is scheduled to consider the legislation in early 2022.
For more information visit NSW Planning.
Submissions
To view any of the submissions, contact the NSW Productivity and Equality Commission.
List of submissions received
A
- Australasian Railway Association
- Australian Library and Information Association
B
- Bayside Council
- Better Planning Network
- Blacktown City Council (Document B)
- Blue Mountains Council
- Business NSW
C
- Camden Council
- Campbelltown Council
- Canterbury Bankstown Council
- Cessnock City Council
- City of Canada Bay
- City of Newcastle Council
- City of Ryde Council (Document B)
- City of Sydney
- City West Housing
- Community Housing Industry Association
E
- Evans Head Memorial Aerodrome Committee Inc.
G
- GLN Planning
- Goulburn Mulwaree Council
- Gunnedah Shire Council
H
- Henry Halloran Trust, The University of Sydney
- Hornsby Shire Council
- Housing Industry Association
I
- Independent Pricing and Regulatory Tribunal
- Individual 1
- Individual 2
- Individual 3
- Individual 4
- Individual 5
- Individual 6
- Inner West Council
J
- J Group
L
- Law Society of NSW
- Local Government NSW
M
- MidCoast Council
- Mining and Energy Related Council NSW
N
- North Sydney Council
- Northern Beaches Council
- Northern Sydney Regional Organisation of Councils
- Novoplan
- NSW Famers
- NSW Minerals Council
- NSW Public Libraries of NSW
- NSW Revenue Professionals
- NSW Vice Chancellors’ Committee
O
- Office of Jamie Parker, Member for Balmain
P
- Parramatta Council (Appendix A) (Appendix B) (Appendix C) (Appendix D)
- Penrith City Council
- Planning Institute of Australia
- Port Stephens Council
- Property Council of Australia
- Prosper Australia (Document B)
Q
- Queanbeyan-Palerang Regional Council
R
- Rawson Communities
- Regional Cities New South Wales (Document B) (Document C) (Document D)
S
- SGS Economics and Planning
- Shellharbour City Council
- Shoalhaven City Council
- Southern Sydney Regional Organisation of Councils
- State Library of NSW
- Sutherland Shire Council (Document B) (Document C)
T
- The Association of Independent Schools of NSW
- The Hills Shire Council
U
- Urban Development Institute of Australia
- Urban Taskforce of Australia
W
- Walker Corporation
- Water Services Association of Australia
- Waverley Council
- Western Sydney Planning Partnership
- Western Sydney Regional Organisation of Councils
- Wollondilly Shire Council
- Wollongong City Council