NSW Department of Planning and Environment

Roadmap to reform rolled out for infrastructure contributions

  • Date: 05.03.2021
  • Type: Ministerial Media Release
  • Author: Dominic Perrottet, Treasurer and Rob Stokes, Minister for Planning and Public Spaces

The NSW Government will undertake major reforms to the infrastructure contributions system, unlocking up to $12 billion in productivity benefits through changes to how public facilities and services are funded through the planning system.


Treasurer Dominic Perrottet and Minister for Planning and Public Spaces Rob Stokes today announced the Government had accepted the NSW Productivity Commission’s 29 recommendations for legislative, policy and operational reform of infrastructure charges.


“These important reforms will ensure communities across the State will have the services and facilities they need and is an example of the type of microeconomic reform that will boost productivity and make NSW an even more attractive place to live and invest,” Mr Perrottet said.


“These changes will help drive our economic recovery from the pandemic by providing local jobs on smaller-scale infrastructure projects by encouraging investment in new housing supply and in the end will create better connected communities.”


The NSW Government will publish its blueprint to implement the recommendations and how it will be delivered in the next 18 months.


“This is the biggest shake-up of the system in three decades and could deliver billions of dollars of benefits over the next 20 years through better services, savings for business and better public spaces,” Mr Stokes said.


“Solving the uncertainty of infrastructure contributions was one of four pillars of our Planning Reform Action Plan. That’s why we’re adopting the Productivity Commission’s recommendations in full to build a more timely, transparent and certain planning system.


“New and growing communities need new roads, parks, schools and hospitals, and it is imperative industry and communities have a clear understanding of how these services get delivered.


“Alongside changes to the local government rate peg methodology, we’re getting the settings right for local communities to proactively plan for growth. Digital tools will also help create certainty for investors, communities and local government.”


The NSW Government will introduce amendments to the Environmental Planning and Assessment Act 1979 to the Parliament in coming months to facilitate the recommendations.


The Department of Planning, Industry and Environment will establish consultation groups to work with local government, industry and the community on the implementation process.


For more information visit our Infrastructure contributions reform webpage.