A Special Infrastructure Contribution is paid by developers to share the cost of delivering the infrastructure required to support growing communities. The SIC funds infrastructure such as schools, State and regional roads, regional open space, emergency and health facilities, and some public transport infrastructure.
Contributions are collected for new developments within a defined boundary called the Special Contributions Area (SCA). SICs are currently being investigated for all Planned Precincts and Growth Areas across Sydney.
The proposed Bayside West SIC has been informed by the draft Bayside West Land Use and Infrastructure Strategy, and precinct proposals for Arncliffe and Banksia. The infrastructure schedule identifies the key pieces of infrastructure that can be delivered by SIC funding, and the SIC rate is the per-dwelling or per-lot portion of the total infrastructure cost to be paid by developers.
The Department will also consider development feasibility in setting a SIC charge so the SIC will not impact housing supply. The SIC framework will be reviewed periodically, with the rate subject to annual indexation.
The proposed special contribution area (SCA) is the boundary in which the SIC will apply. The Bayside West proposed Special Contributions Area covers the precincts of Arncliffe, Banksia and Cook Cove. Below is the proposed SCA for the Bayside West SIC:
The SIC rate for Bayside West has been assessed at $9,000 per additional dwelling or lot within the SCA.
Anyone who is developing and delivering new residential dwellings within the Bayside West Special Contribution Area (SCA) will pay a Special Infrastructure Contribution to the state government. Tenants and small businesses will not be affected by the SIC.
Exemptions are proposed for development of public housing, seniors housing or affordable housing carried out by or on behalf of a social housing provider. The contribution does not apply to employment or commercial land, except for the residential component of development in mixed use zones.
The proposed Bayside West SIC will provide $86.4 million for key state and regional infrastructure delivery in the Bayside West precincts over the next 20 years, including:
You can view the full infrastructure schedule and map here.
During consultation on the Bayside West Planned precincts in 2017 more than three quarters of survey respondents told us they wanted more and improved open space.
The Department is in negotiations with Roads and Maritime Services (RMS) to create a new 7000 sqm park at Burrows Road, next to Arncliffe station. The draft Bayside West SIC has allocated $8 million towards land acquisition, and $7 million towards embellishment of the park.
In addition to the SIC, up to $10 million in NSW Government funding from the Precinct Support Plan has been allocated towards a public domain plan, and local park upgrades at Arncliffe Park and Gardiner Park.
Planning for Cooks Cove is limited to improvements to pedestrian, cycling and vehicle connections and public access to the riverfront only.
The NSW Government will work with the Council to ensure great opportunities and strategic planning for Cooks Cove is done at a local level. The recently released Bayside West Precincts 2036 Plan includes a number of planning principles to guide the future assessment and development at Cooks Cove.
The NSW Government has provided $2.5 million to Bayside Council to help update its Local Environment Plan, which is the primary tool to guide planning decisions for the Council to ensure local development is done appropriately.
The rezoning of land, particularly to higher density residential, means a significant increase in the demand for new and upgraded infrastructure to accommodate new homes planned in Bayside West. A coordinated approach is essential for funding the delivery of new and upgraded infrastructure in line with population growth.
The SIC will ensure infrastructure such as new bus stops, intersection and road upgrades, foreshore access, open space and pedestrian and cycle connections will be coordinated to support the community’s needs at the same pace as the delivery of new homes and jobs.
The SIC framework has many benefits for the community, landowners, councils and developers:
Special Infrastructure Contributions fund state and regional infrastructure which means a SIC may only be determined by the Minister for Planning.
Section 7.11 and 7.12 contributions plans are made by local government authorities to assist them with funding local infrastructure items within a local government area. This funding allows the delivery of local facilities and services such as local roads, local open space and community facilities such as libraries. These services are typically the responsibility of local government.
Infrastructure contained in a local contributions plan will be different to that contained in a SIC infrastructure list.
Where a voluntary planning agreement (VPA) has been previously negotiated with a landowner or developer for the provision of state infrastructure, the Department will take this into account and developers will not be charged under both mechanisms (i.e. will not be double-charged).
Once a SIC has been determined it will replace the need for developers to negotiate VPAs for development within the Special Contribution Area. This offers transparency about what infrastructure projects are being funded and certainty about the contribution amount.
The SIC is paid as a monetary contribution by developers to the state government during the development application (DA) stage or when new lots are created at the time of subdivision. Alternatively, developers may seek approval from the Minister for Planning to dedicate land for required infrastructure or build a piece of required infrastructure, instead of making a financial contribution. The delivery of infrastructure instead of a financial contribution is known as a works-in-kind agreement.
The Ministerial Determination is the legal document that allows a Special Infrastructure Contribution to be applied to development within a contribution area under the Environmental Planning and Assessment Act 1979. An individual Determination must be made for each area where a SIC is proposed, signed by the Minister for Planning and published in the Government Gazette before it can be applied.
Once the determination is made the Minister will issue a direction to local councils to impose the contribution as a condition of consent on all resident development applications.
The proposed SIC for Bayside West is currently on exhibition and you are encouraged to provide feedback on the proposed rate, contribution area and infrastructure schedule until 23 November 2018.
The Department has identified the need for infrastructure costs contained within the schedule to keep pace with annual changes in the cost of land and construction services.
The proposed indexation of the Bayside West SIC will be based on the Producer Price Index.
Page last updated: 08/04/2019