Commissioner for Productivity

Infrastructure Contributions Review

In April 2020, the Hon. Rob Stokes MP, Minister for Planning and Public Spaces requested the NSW Productivity Commissioner undertake a review of the infrastructure contributions system in New South Wales, and report back with recommendations for reform.

The Commissioner has completed his review, with his findings and recommendations for reform outlined in the Final Report. The Review has made 29 recommendations to deliver an efficient system, that is easy to understand, is transparent and consistent in its application, and provides greater certainty to market participants.

The Final Report was released on 3 December 2020. Priority recommended reforms include:

  • amending the local government rate peg to reflect population growth
  • cost reflective section 7.11 contributions based on efficient costs
  • requiring infrastructure contributions plans to be developed upfront prior to rezoning
  • retaining the simplicity of section 7.12 levies but with a higher maximum rate for residential development
  • introducing rigor in the application of section 7.4 planning agreements (State and local) 
  • broad-based regional contributions of between $8,000 and $12,000 per dwelling in Greater Sydney, the Central Coast, Hunter and Illawarra-Shoalhaven, in place of special infrastructure contributions
  • restoring water charges for Sydney Water and Hunter Water, which are currently set at zero
  • simplifying the system with digital tools, adopting benchmark costs and use of standardised templates.

The Government is currently reviewing the recommendations and will consider the views of stakeholders in developing a roadmap to implement the reforms by early 2021.

For more information visit www.planning.nsw.gov.au/infrastructure-contributions-reform

Further enquires can be directed to infrastructure.contributions@planning.nsw.gov.au

 

Supporting Documents

 

 

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Issues Paper

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Q&As for the Final Report

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Terms of Reference

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Engagement Outcomes Report

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Evaluation of Infrastructure Contributions Reform in New South Wales

Download the Evaluation

Public Submissions

Submissions to the Infrastructure Contributions Review