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Media Release - Minister's Office Sydney: 13 July 2009 FINAL RESULTS OF REVIEW OF LOCAL INFRASTRUCTURE CONTRIBUTIONS Planning Minister, Kristina Keneally, today announced the final results of a review into levies which are charged by local councils on housing development. The review began following the December 2008 announcement that the NSW Government would reduce State levies by up to $27,000 and introduce a $20,000 per lot threshold for council levies. The Government appointed a contributions review panel, including independent experts, to review section 94 (local contributions) plans of councils wanting to exceed the $20,000 threshold. A total of 34 councils had levies above the $20,000 per block threshold. The first round of the review, announced in June, considered plans from 11 councils. “In total, the review has resulted in six councils being directed to, and six volunteering to, reduce one or more of their plans to below the $20,000 threshold,” Ms Keneally said. “The six councils directed to reduce levies to below the threshold are Lane Cove (announced in round one), Hunters Hill, North Sydney, Manly, Coffs Harbour and Tweed. “Ryde, Rockdale, Canada Bay, Botany Bay, Burwood and Port Macquarie-Hastings also voluntarily agreed to reduce their plans below the threshold, while Great Lakes is currently reviewing its plan to come under the threshold.” Ms Keneally said that as a result of this review process: • There are now 12 councils which have levies below $20,000 per block which previously did not – and a reduction to $20,000 in a 13th council appears likely; • A further 10 councils have been allowed to continue levying above the threshold, however savings of up to $18,000 have been found in those plans; • Another 10 councils have been allowed to continue levying at their current above-threshold rates, in almost all cases on the condition that further reviews are undertaken; and • One remaining council, Byron Shire, has submitted a draft plan, which is still under review. Ms Keneally gave further details on the second round of the review, which highlighted inconsistencies and complexities across New South Wales councils. “For this final stage of the review, I have decided to apply the $20,000 threshold across four entire council areas: Hunters Hill, North Sydney, Manly and Coffs Harbour,” Ms Keneally said. “In addition, the majority of a fifth council area, Tweed council with the exception of Seaside City, will be limited to the $20,000 threshold.
“Further, plans for Port Macquarie-Hastings will be limited to $20,000 after Council withdrew its application to go above the threshold. “And Great Lakes Council has advised it is reviewing its plan to come under the $20,000 threshold. As the Planning Department is working with that Council, it is not subject to the outcomes I report on today. “Ten other councils have been given an exemption to the threshold provided that, in nearly all cases, additional reviews are undertaken into how further savings can be made. “Depending on the circumstances, I have directed councils to have these reviews completed between September and December 2009.” Ms Keneally said that in most cases, the decision to reduce a council’s levies was based on the fact that those councils were charging for services or infrastructure not directly related to new development. “There were several cases where councils were applying levies to new blocks of land, for services which benefited entire communities,” Ms Keneally said. “Examples include levies being charged on new blocks of land to cover the costs associated with providing library books, internet kiosks, public art, and animal management facilities.” Ms Keneally said that the levy review has been a good opportunity to work with councils and the development industry to address issues of infrastructure provision and housing affordability. “We want a levy system which does not hinder housing construction, but does ensure funds are vailable to provide supporting services and infrastructure for new homes,” Ms Keneally said. Ms Keneally said that the formal legal directions relating to the second round of reviewed plans have been delivered to councils, meaning the changes will take effect within seven days.
For full details of the final results of the review, please go to http://www.planning.nsw.gov.au/planningsystem/pdf/medrel_s94levies_round2_13jul09.pdf
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