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Have your say on infrastructure contributions reform

May 13, 2020

The Minister for Planning and Public Spaces has announced a review of the infrastructure contributions system in NSW. The reform process includes a longer-term comprehensive review of the infrastructure contributions system as well as some more immediate reforms.

The comprehensive review of the infrastructure contributions system is to be undertaken by the NSW Productivity Commissioner. Read the terms of reference for the review. The Commissioner is to deliver a final report to the Minister by the end of 2020.

In addition to the Productivity Commissioner’s review, the NSW Government is seeking feedback on proposed updates to the planning system that can be made in the short-term.

There are five reports (and associated documents) open for public comment with submissions invited by Friday 12 June 2020. HIA is currently preparing a submission on these reports in accordance with HIA’s Policy Position on Infrastructure Charges and Levies on Residential Development. This submission will be available on our web page following the submission close date.

Details of the five reports open for public comment follow:   

Section 7.11 contributions plans
The proposed reforms focus on the Independent Pricing and Regulatory Tribunal (IPART) review process for local contributions plans and the threshold level for the ‘caps’ that trigger the reviews. More information.

Section 7.12 flat percentage levy
A proposal to introduce criteria which will be applied to requests from local councils to raise s7.12 levies from a maximum of 1% to a higher rate of 2% or 3%. Read more

Planning agreements
This includes a draft planning agreements practice note and draft ministerial direction to introduce greater transparency and accountability around the voluntary planning agreement process. More information here.

Special infrastructure contributions
Draft guidelines which seek to improve the transparency of the application of State infrastructure contributions. More information.

Amendments to the Environmental Planning & Assessment Regulation 2000
A number of changes are proposed to the Planning Regulation to increase transparency in the infrastructure contributions system, including additional reporting requirements for councils and consent authorities for development contributions collected and planning agreements made. More information here.

If you would like further information on the proposed reforms, please contact HIA’s Planning Team on 02 9978 3333 or nsw_planning@hia.com.au to discuss this matter.