We are making two key changes to the way land use contributions are made:
- Contribution Plans will be prepared upfront (when needed) and exhibited at the same time as the rezoning proposal; and
- Direction will be given to think about how opportunities for dual use and shared use of open space.
Strategic land use planning and infrastructure plans
Why are we making changes?
Currently, local contribution plans are developed by councils when there is a new development. The plan is determined by the demand for local infrastructure.
The NSW Productivity Commission recommended changes that industry supported. We are proposing that early consideration is made of the infrastructure costs for land and services, aligning contribution plans to rezoning and considering the efficient use of land.
What are the changes?
The infrastructure reforms propose that a new or amended local contributions plan be prepared and placed on exhibition at the same time as a planning proposal.
How are we doing it?
The reforms are being implemented through the future approval of section 9.1 Ministerial Directions and a practice note module that outlines best practice process in developing a local contributions plan during the planning proposal process.
What will the new practice note achieve?
Aligning contribution plans to rezoning will mean we have a consistent and known cost that can be built into business cases for investment, clear revenue streams for infrastructure and fewer ad hoc approaches to funding infrastructure.
This simultaneous process will provide certainty for industry, councils and the community as to the likely development costs including local infrastructure contributions. It also means business and investment decisions can be made in confidence.
The practice note outlines a best practice process for councils and developers to exhibit the planning proposal and draft infrastructure contribution plan together.
Dual use and shared use of open space
Why are we making changes?
The changes were part of the NSW Productivity Commission’s recommendations to guarantee efficient use of land and adequate land for public amenities and facilities is provided in new developments.
Efficient planning and use of land is necessary to balance out the need to provide open space for community use, balanced against the cost of infrastructure.
What are the changes?
A council or proponent when undertaking strategic planning for new residential development or renewal areas need to demonstrate consideration of the efficient use and design of land, including the possibility for the dual use or shared use of land for open space, public amenities, public facilities and community facilities.
An example of dual use of open space is a community facility and open space on the one parcel of land.
How are we doing it?
It will not be a requirement for every planning proposal to need to consider the efficient use of land.
Instead, it will apply to a planning proposal in an existing or proposed residential zone or business zone (including the alteration of any existing residential zone or business zone boundary)and any other zone in which significant residential development is proposed to be permitted in order that adequate shared open space is accessible to the future community.
It does not apply to a planning proposal which only proposes to rezone land for rural residential purposes.
Benefits of the reforms
The changes ensure that the infrastructure needs, and costs are known upfront to increase certainty and allow costs to be factored into decision making.
We have heard countless times from industry the unfair scenario where a landowner gets the windfall, and the developer pays for the heightened price of land, plus levies. We’re changing that to make sure that everyone who benefits chips in.
Our reforms will guarantee efficient use of land and adequate land for public amenities and facilities is provided in new developments.
Consultation and feedback
We have written two Ministerial Directions and a practice note module setting out the proposed changes to land use contributions and the timing of completing a local contributions plan.
Please visit the NSW Planning Portal to view the documents. The public exhibition has closed.
- Environmental Planning and Assessment (Housing, Infrastructure and Urban Development – Dual and shared use of open space and public facilities) Direction 2022
- Environmental Planning and Assessment (Local Infrastructure Contributions – Planning Proposals) Direction 2022
- Practice Note: Contributions plans and planning proposals