The NSW Government has a plan to fix the uncertainty of infrastructure contributions, which will unlock new housing supply, deliver vital public infrastructure and boost investment in NSW.
The plan involves two complementary processes:
Property developers pay infrastructure contributions to the State government and councils, helping with the cost of providing the infrastructure needed to deliver great places. This helps fund public spaces, footpaths, cycleways, roads, stormwater drainage and other social and community facilities.
Contributions are collected using a suite of tools, including special infrastructure contributions, planning agreements and local 7.11 and 7.12 contributions. To find out more, please visit the infrastructure funding policies webpage.
In April 2020 the Minister for Planning and Public Spaces asked the NSW Productivity Commissioner to conduct a comprehensive review of infrastructure contributions system in NSW (the Review). A key objective was to determine whether the system meets the objectives of certainty and efficiency while delivering public infrastructure to support development.
In November 2020, the NSW Productivity Commissioner provided his Final Report on the Review to the Minister for consideration. The report is publicly available at the NSW Productivity Commission’s website.
The report forms the foundation of reform to create more certainty about how infrastructure is funded and delivered to support new and existing communities.
The NSW Productivity Commissioner’s report contains 29 recommendations to:
The Government is considering the report’s recommendations and is seeking stakeholder input in developing a roadmap to implement system reform. A Government response is expected to be released in 2021.
While the NSW Productivity Commissioner’s review was underway, the department sought feedback on five proposed system improvements to the infrastructure contributions system.
The proposed system improvements respond to a range of recent planning system and governance reviews, including the Kaldas Review. The following three have been released:
For more detailed information on these recent improvements, you can read the following Frequently Asked Questions (FAQs):
The following system improvements are expected to be considered in the context of broader system reform:
The proposed changes were placed on public exhibition from 15 April 2020 until 12 June 2020. The department has reviewed and considered all submissions received. A report summarising submissions received and the department’s response is now available.
To find out more about the exhibited system improvements follow the links below:
For further information on recently released infrastructure contributions system improvements, please refer to the following pages:
Page last updated: 12/02/2021