NSW Department of Planning and Environment

Infrastructure contributions

Planning agreements are entered into by a planning authority and a developer where the developer agrees to provide or fund designated State infrastructure such as public amenities, affordable housing or transport.

It has helped set a clear basis for legal agreements between planning authorities and developers to deliver public benefits in association with development, particularly in relation to complex, large scale or staged infrastructure for major development.

To provide a clearer policy framework for the role and use of planning agreements, the Minister for Planning will have the power to direct the methodology used by councils when entering into voluntary planning agreements.

Improvements to the infrastructure contributions system will promote the efficient, transparent and fair sharing of infrastructure costs and benefits where development occurs.

In high growth areas such as planned precincts and growth areas across metropolitan Sydney, the Hunter and Illawarra, the Department is preparing special infrastructure contribution determinations for State and regional infrastructure to make sure new development is support by growth infrastructure.

The Department will work with IPART, councils and industry to review current guidelines on the costs, design and provision of local infrastructure delivered through local infrastructure contributions to ensure they are delivered efficiently and to appropriate standards.


Changes to planning agreements will commence from 1 March 2018 with further work to be carried out to provide guidance to stakeholders.

To read more about the changes to the Act see Part 8 - Reviews and appeals.

Page last updated: 04/10/2022