Improving the infrastructure contributions system

The NSW Government has a plan to fix the uncertainty of infrastructure contributions, unlocking new housing supply, delivering vital public infrastructure and boost investment in NSW.

The plan involves two complementary processes.

The first, a review of the infrastructure contributions system, will assess how infrastructure is funded in NSW and look at matters in and beyond the planning system.

The second, more immediate process, is to identify and make improvements to the infrastructure contributions system that will make it more transparent and easier to use.

Infrastructure contributions

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. You can find out more about the infrastructure contributions system.

Review of the infrastructure contributions system

The NSW Government is conducting a holistic review of the infrastructure funding in NSW to determine whether it meets the objectives of certainty and efficiency, while delivering public infrastructure to support development.

In July 2020, the NSW Productivity Commissioner released the Issues Paper to shape the productivity reform agenda for NSW.

This review recommends options for reform that are aimed at delivering a principles-based system to deliver the infrastructure needed to match growth. This could include proposed changes to the Environmental Planning and Assessment Act 1979 and to other legislation that impacts infrastructure funding.

Stakeholders and the community were invited to provide feedback on the Issues Paper from 8 July 2020 until 5 August 2020.

For more information, please visit the NSW Productivity website.

Infrastructure contributions system improvements

In support of the NSW Productivity Commissioner’s review, we sought feedback on some proposed updates to the planning system that can be implemented in the short term to make it more transparent and easier to use.

These proposed system improvements respond to a range of recent governance reviews, including the Kaldas Review, on how the planning system might be improved.

Consultation and feedback

The proposed changes were on public exhibition from 15 April 2020 until 12 June 2020.

The department is currently reviewing and considering all submissions received.

Your feedback will help inform critical improvements to the infrastructure contributions system in NSW.

To find out more about the proposed changes, follow the links below:

• Draft planning agreements policy framework
  Proposed guidance material to provide more transparency around the planning agreement process. It will reinforce the fact that planning agreements are to fund innovative solutions to the community's infrastructure needs.

 

• Improving the review of local infrastructure contributions plans discussion paper
  Proposed efficiency reforms to the review process for section 7.11 contributions plans, which will improve the overall function and application of the funding mechanism and support councils in planning for the infrastructure needs of their growing communities.

 

• Criteria to request a higher section 7.12 percentage discussion paper
  Proposed criteria to provide clarity and guidance on when higher percentage rates for section 7.12 contributions may be appropriate, particularly for centres and economic corridors, to support councils in creating great places.

 

• Draft Special Infrastructure Contributions (SIC) guidelines
  Proposed guidelines to improve transparency around the purpose and function of SICs.

 

• Proposed amendments to the EP&A Regulation
  Proposed changes to improve transparency through clearer accounting and reporting on contributions by councils and planning authorities.

For more information

For further information, please see our Frequently Asked Questions (PDF, 94 KB), or phone 1300 305 695. If you require translation assistance, please call 131 450.

You can also subscribe to our newsletter for regular updates from the Department.