Housing and productivity contribution

The Works-in-Kind Guideline sets out how developers can deliver eligible state and regional infrastructure in place of making a housing and productivity contribution or part of that contribution. It provides a clear, consistent process for assessing proposals, giving industry certainty and helping deliver the infrastructure needed to support new homes.

Infrastructure Opportunities Plans provide greater clarity to developers about which projects could be delivered through works-in-kind to offset their Housing and Productivity obligation, allowing essential infrastructure to be built alongside new homes.

• Streamlined proposals apply to planned growth works-In-kind and accelerated proposals. They are faster because projects are already identified on the Infrastructure Opportunities Plans and have a clearer evidence base.
• Detailed proposals apply to major rezonings innovative proposals. They require more information because these projects are usually not yet on the Infrastructure Opportunities Plans and need full assessment of infrastructure needs, costs, risks and alignment with NSW Government priorities.

Before offering to deliver a state and regional infrastructure project, proponents are recommended to:

• confirm whether the project is prioritised on the relevant IOP
• meet the criteria for a streamlined or detailed proposal set out in the guideline
• submit the required documentation during the submission period.

If you would like to speak with the Department throughout this process, email the program team at [email protected]

The NSW Government will invite proposals twice per year between June and August and November to January.

• The Department in consultation with the relevant Government agencies, assesses proposals and prepares advice for the Urban Development Program Oversight Committee, which then makes recommendations to the NSW Government.
• The NSW Government makes the final decision.

You will be informed after the NSW Government makes its decision, following assessment and a recommendation from the Urban Development Program Oversight Committee.

Only once the NSW Government accepts the offer does agreement drafting begin.

You may still need to pay part of the contribution if your works or land do not fully offset your contribution.

It is the annual allocation set aside from forecast housing and productivity contribution revenue that can be used to offset monetary contributions through developer‑delivered infrastructure.

The NSW Budget guides how many proposals can be supported each year.

Participation is voluntary. If you don’t want to wait, you can simply pay the housing and productivity contribution as a monetary contribution and proceed with your development.

The final housing and productivity contribution Works-in-Kind Guideline represents the Department’s careful review of submissions and includes several key post-exhibition changes.

The draft Guideline proposed no ‘credits’ where the value of developer-delivered infrastructure exceeds a housing and productivity contribution scheme liability, and many submissions raised issues with this approach. The final Works-in-Kind Guideline proposes that for ’accelerated proposals’ and ‘innovative proposals’, no more than 50% of surplus offset value (or credits) will be recognised under a planning agreement. Read the Works-in-Kind Guidelines (PDF, 2.9 MB) for more information.

The draft Guideline also proposed the introduction of a cap on the total value of infrastructure delivered by industry each year. A Budget allocation for works-in-kind projects will be programmed for each financial year and set as part of the annual budget process. This is to ensure that the amount of developer-delivered infrastructure in the region does not undermine the ability of the housing and productivity contribution scheme to fund other state-delivered infrastructure projects and land acquisition. The Budget allocation can also be adjusted as part of the annual Budget process as proposals are considered

In response to feedback that further clarity is required on the process for developer delivery at different development stages, the Works-in-Kind Guideline now provides specific guidance for offers before and after consent, and new guidance has been provided for offers for developer delivery at the rezoning stage (innovative proposals).