Housing and productivity contribution

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 two categories – Works-in-Kind proposals (development has approval) and Accelerated proposals (development seeking approval) and are for projects already identified on Infrastructure Opportunities Plans (IOPs) as future infrastructure that could be delivered as works-in-kind.

Detailed (innovative) proposals, however, apply to a change in land use or intensification of development controls (a rezoning) in a Housing and Productivity Contribution region, that includes a proposal for developer delivery of eligible state or regional infrastructure. They require more information because these projects are usually not yet on the IOPs and need full assessment of infrastructure needs, costs, risks and alignment with NSW Government priorities.

Refer to Table 1 in the Works-in-Kind Guideline (PDF, 3.5 MB) for more information.

For Streamlined proposals, proponents must complete the submission form (DOCX, 96 KB) and input sheet (XLSX, 227 KB) to assist with the application process and submit their application to [email protected]

Detailed proposals must be submitted alongside a rezoning planning proposal. These proposals take longer than streamlined proposals, as the intent is to include new projects on the Infrastructure Opportunities Plans which needs to be assessed for its strategic merit and endorsed by the Urban Development Program Oversight Committee.

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

• confirm whether the project is prioritised on the IOP
• ensure the project meets the mandatory criteria for developer-delivered proposals (outlined in Appendix B and C in the Guideline)
• ensure submissions are made with the required documentation during the set timeframes.

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

The NSW Government will invite streamlined proposals twice a year, between 1 June and 31 August (Round 1) and again from 1 November to 31 January (Round 2). Detailed (innovative) proposals can be submitted at any time of the year to [email protected]

The Department, in consultation with the relevant Government agencies, assesses proposals in accordance with the WIK Guideline 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.

Offers to deliver infrastructure cannot proceed unless agreed to by the Minister for Planning and Public Spaces. All offers are agreed through a legal agreement, a contract between the NSW Government and a proponent.

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 partially pay 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 do not wish to propose developer-delivery, you can instead pay the housing and productivity contribution as a monetary contribution and proceed with your development right away.

Infrastructure delivered in lieu of a monetary contribution must be delivered in the region in which the Housing and Productivity Contribution development will be carried out.

The final Guideline reflects feedback received during exhibition. Key changes include a surplus credit limit (up to 50%) for infrastructure delivered under accelerated and innovative proposals, removal of the proposed annual cap on total infrastructure value and replaced with a mechanism to seek annual budget adjustments  for works in kind projects, and providing clearer guidance on works in kind offers made before and after consent, as well as at the rezoning stage for innovative proposals.