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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.
The NSW Government has conducted a holistic review of infrastructure funding in NSW to determine whether it meets the objectives of certainty and efficiency while delivering public infrastructure to support development.
The NSW Productivity Commissioner delivered his Final Report on the Review in November 2020. The report is publicly available at the NSW Productivity Commission’s website and forms the foundation of reform to create certainty about the funding and delivery of infrastructure to support new and existing communities.
In March 2021, the government confirmed it had accepted all 29 recommendations in the Final Report, to:
Read all details about the NSW Government’s response to NSW Productivity Commission’s Review of Infrastructure Contributions in NSW (PDF, 188 KB).
The department will now begin implementation of the recommendations, which include the establishment of an advisory group and future consultation of proposed regulatory amendments and associated guidance. There will be opportunities to provide feedback on the implementation of the recommendations.
For further information about the department's next steps, download our Infrastructure Contributions Reform Roadmap (PDF, 1.9 MB).
Stage 1: Q1 - Q2 2021 – Discovery and direction
- Implement immediate system improvements – clearer direction, increased transparency and accountability
- Establish the Advisory Group
- Prepare and submit enabling legislation
- Prepare regulatory amendments
Stage 2: Q3 - Q4 2021 – Solution design and validation
- Exhibit regulatory amendments, policy instruments, Practice Notes
- Respond to feedback received during exhibition
- Collaborate with Advisory Group to test design
Stage 3: Q1 - Q2 2022 – Finalisation and commencement
- Implement any legislative and regulatory amendments
- Communicate changes and guide practitioners
- Early adoption of digital tools
Stage 4: Q3 2022 onwards – Progressive implementation by councils
- Legislative and regulatory amendments are in place and effective
- Build capacity and expertise through training and development programs
- Implement new contribution plans in the digital system
Legislation has been introduced to the NSW Parliament as part of the infrastructure contributions reforms to boost productivity, provide certainty for industry and support housing supply and affordability. A copy of the Environmental Planning and Assessment Amendment (Infrastructure Contributions) Bill 2021 is available on the NSW Parliament website.
To help you navigate the Bill, we have prepared a Guide document.
The enabling legislation will provide the foundations for a stronger infrastructure contributions system by matching infrastructure funding with infrastructure outcomes for new and growing communities.
The reforms include:
Once the legislation is passed, the new system is expected to be implemented and in place by 1 July 2022.
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:
Additionally you can contact us via our online form.
Page last updated: 23/06/2021