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NSW Department of Planning, Industry and Environment
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Delivering infrastructure in time with the demand is essential for supporting growing communities. Ensuring infrastructure delivery is funded and aligned with forecast population growth means we can plan for these communities to continue to grow and thrive for years to come.

 

The recent Land Use and Infrastructure Implementation Plan (LUIIP) for the North West Growth Area identified a higher rate of growth than when the existing Western Sydney Special Infrastructure Contribution (SIC) was created. To ensure infrastructure funding and delivery is aligned with the new forecasts, a new SIC based on the North West Growth Area has been prepared.

 

The proposed Special Infrastructure Contribution scheme will provide $1.5 billion in developer funding over the next 30 years for new and upgraded state and regional infrastructure in the North West Growth Area, including:

  • Roads, Bridges, Intersections - $1.05 billion
  • Public Transport Infrastructure - $80 million
  • Active Transport Infrastructure - $4 million
  • Education - $95 million
  • Health - $35 million
  • Emergency Services & Justice - $7 million
  • Open Space and Conservation - $69 million
  • Biodiversity - $101 million
  • Planning and Delivery - $63 million

 

You can read about the proposed North West SIC below, and view the capacity to pay report here.

 

Read about the proposed North West SIC

Exhibition of the proposed North West SIC closed on 2 November 2018. Submissions are under consideration and will be published online shortly.

 

For further information please phone 1300 305 695 and ask to speak to the Planned Precinct Infrastructure Delivery team.

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 prepared and proposed for all Planned Precincts and Growth Areas across Sydney.

 

The SIC is based on strategic planning for the contribution area. 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 that must be paid by developers.

 

The Department will also consider development feasibility in setting a SIC charge so that the SIC will not impact housing supply. The SIC framework will be reviewed on a bi-annual basis with the rate subject to indexation.

A Special Infrastructure Contribution has been in place in Western Sydney since 2011. During this time, the Department has collected $311 million from developers to deliver a range of regional infrastructure projects. Although the existing SIC has been successful to date in funding key infrastructure in time with growth, the per-hectare rate does not account for the additional demand associated with higher density residential development.

 

In response to recent planning work, including planned increases in residential development in the North West, Western Sydney Aerotropolis and South West Growth Areas, the existing Western Sydney SIC will be split into three separate Special Contribution Areas (SCAs). This means the SIC rates and infrastructure schedules will be more closely aligned with the unique plans and infrastructure needs for each Growth Area.

The proposed special contribution area (SCA) is the boundary in which the SIC will apply. Below is the proposed SCA for the North West SIC:

North West Special Contribution Map

Anyone creating additional demand for infrastructure by subdividing land in the North West Growth Area will be required to pay a SIC. If you are building a home on land that has already been subdivided, you will not be required to pay a SIC.

 

Collecting SICs as part of the development process (when land is subdivided in greenfield areas or at the development application stage in urban renewal areas) will ensure key infrastructure is funded and delivered in time with development.

A SIC payment is not required if you are building a home on an existing lot. The SIC would have been paid when the subdivision certificate was issued.

The proposed rate for the North West SIC will apply on a per-dwelling basis for residential development, while the current Western Sydney Growth Area rate applies on a per-hectare basis. Charging a per-dwelling rate means contributions will be more closely aligned with the demand and pace of residential development.

 

A per-hectare net developable area rate will still apply for North West Employment Land to fund infrastructure associated with industrial development.

 

 Category  Rate Current Western Sydney SIC Proposed North West SIC
1. North West Residential per hectare net developable area  $214,511  n/a
per additional dwelling  $14,583 *  $15,426
2. Balmoral Residential per hectare net developable area   $170,232  n/a
per additional dwelling  $11,573 *  $15,267 **
3. North West Employment Land per hectare net developable area  $92,995  $98,367

 

*The equivalent per additional dwelling rate based on an average density of 14.71 dwellings per hectare

 

**The Balmoral Residential rate excludes the costs associated with the original Growth Centres biodiversity certification

 

Proposed charge areas:

North West Proposed Charge Areas Map

Special Infrastructure Contributions for the North West, Western Sydney Aerotropolis and South West Growth Areas will continue to provide funding for biodiversity certification. This means the impacts of development in Growth Areas can be assessed and offset by securing land for environmental conservation.

The Balmoral Residential SIC rate is slightly lower than the North West Residential rate as the land within this precinct is not subject to biodiversity conservation measures.

 

A per hectare net developable area rate will still apply for industrial development in the North West Special Contribution Area to ensure infrastructure to connect people to jobs is funded and delivered.

Before the proposed Special Infrastructure Contribution for the North West Growth Area can be applied, the Department must consider all feedback made during its exhibition and also exhibit and consider feedback on the Western Sydney Aerotropolis and South West SICs. The existing Western Sydney Special Infrastructure Contribution must then be repealed and replaced with three new Determinations for the proposed Special Contribution Areas:

  1. Western Sydney SIC Determination is in place
  2. Review of the current Western Sydney SIC is completed
  3. Consultation on proposed SIC rates, boundaries, and infrastructure for North West, Western Sydney Aerotropolis and South West Growth Areas
  4. Feedback is considered and any required changes are made to the proposed new SICs
  5. Repeal the existing Western Sydney SIC Determination and implement new SICs for North West, Western Sydney Aerotropolis and South West Growth Areas
  6. New Special Contribution Areas and SIC rates applied for North West, Western Sydney Aerotropolis and South West Growth Areas

 

The existing SIC scheme for Western Sydney will remain in place until a revised Determination is made by the Minister for Planning.

Below is a map of proposed infrastructure that will be funded by the North West SIC. The proposed infrastructure schedule (including cost estimates) can be seen in the North West SIC brochure. A map of proposed projects can be seen below:

 

North West Proposed Infrastructure Map

 

The Department will work with other State Government agencies and Blacktown, Hawkesbury and Hills Shire Councils to determine the timing of project delivery, considering current and forecast development rates and infrastructure capacity. Other state infrastructure identified in the draft plans for the North West Growth Area and not funded by the SIC will be the responsibility of the relevant agency to fund and deliver.

The proposed North West SIC will provide $3 billion to fund key infrastructure over the coming decades.

 

Developers will contribute $1.5 billion (50 per cent) and the NSW Government would provide the remaining 50 per cent to ensure the SIC does not impact development feasibility and housing supply. This is consistent with the model used for the existing Special Infrastructure Contribution for Western Sydney.

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 by developers to the state government during the development application (DA) process 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 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 levied on 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 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 North West SIC will be based on the Producer Price Index.

Page last updated: 08/04/2019