A NSW Government website

Productivity Commissioner's recommendations

The reform package was developed by the NSW Productivity Commissioner

We are implementing all the recommendations of the Commission. When developing the recommendations, the Commission took into consideration feedback from industry, councils and the community

We’re adopting these recommendations to build a system that is clear, consistent, transparent and fair and that delivers the right infrastructure in the right place at the right time.

The below table sets out the Commissioner’s recommended policy change and where you can find it in our exhibition material.

Productivity Commissioner's recommended policy changeExhibition material
Both section 7.11 and 7.12 contributions

Introduction of system objectives and refinement of existing principles to make the contributions system more efficient and cost reflective (Recommendation 2.1)

Principles of infrastructure contributions module

Selecting the most appropriate funding mechanism module

All infrastructure contributions plans required to be made through the new online digital tool on the NSW Planning Portal (Recommendations 4.8 and 6.1)

Making a section 7.11 contributions plan module

Making a section 7.12 contributions plan module

Digital tool

Pooling of contribution funds is permitted by default (Recommendation 4.9)

Borrowing and forward funding module

Draft amendments to the Environmental Planning and Assessment regulation

A new exemptions policy that is simple, clear, and standardised (Recommendation 6.4)

Draft amendments to the Environmental Planning and Assessment regulation

Section 7.11 contributions

Infrastructure contribution plans to be developed upfront as part of the zoning process (Recommendation 4.1)

Making a section 7.11 contributions plan module

Exhibition module

Draft amendments to the Environmental Planning and Assessment regulation

Land use planning process

Introduction of a direct land contribution mechanism (Recommendation 4.2)

Making a section 7.11 contributions plan module

Local contributions and land value contributions

Land value contribution: Exhibition paper

Draft amendments to the Environmental Planning and Assessment Regulation

Introduction of benchmarked costs for infrastructure (Recommendation 4.5)

Making a section 7.11 contributions plan module

Section 7.12 contributions

Levy for residential development equivalent to 3% and charged as a rate per dwelling. Commercial and industrial uses remain at the equivalent of 1% and charged as a rate per square metre (Recommendation 4.11)

Making a section 7.12 contributions plan module

EP&A Regulation: Explanatory paper

Draft amendments to the Environmental Planning and Assessment Regulation

Planning agreements

Planning agreements are now also consistent with principles of the infrastructure contributions system (Recommendation 4.12)

Principles of infrastructure contributions module

Draft planning agreements must now be publicly exhibited before being entered into (Recommendation 4.12)

Exhibition module

Digital tool

Draft and approved planning agreements and the register of agreements in new digital tool on the NSW Planning Portal (Recommendation 4.12)

Draft amendments to the Environmental Planning and Assessment Regulation

High-level guidance for mining and energy related planning agreements (Recommendation 4.13)

Infrastructure contributions for mining and energy developments module

Regional infrastructure contributions

New Regional Infrastructure Contribution (Recommendation 5.1)

New framework for state infrastructure contributions

RIC: Discussion paper

RIC: Explanation of Intended Effects

Practice Note for the new Regional Infrastructure Contribution (Recommendation 5.2)

RIC: Discussion paper – Section 4.2.3

Guidelines for State Planning Agreements in the RIC System

New Transport Infrastructure Contribution (Recommendation 5.3)

RIC: Discussion paper – Section 3.3.3

New Biodiversity Infrastructure Contribution (Recommendation 5.4)

RIC: Discussion paper – Section 3.3.4

Local contributions and Regional contributions

Practice note to guide efficient and consistent use of works-in-kind agreements (Recommendation 6.2)

RIC: Discussion paper – Section 4.2.4

Introduce a simple, clear, standardised exemptions policy (Recommendation 6.4)

RIC: Discussion paper – Section 3.2.2