NSW infrastructure contributions review underway

The NSW
Productivity Commission has released an issues paper as part of its review into
the state’s infrastructure contributions system.

The paper examines how infrastructure is currently funded in NSW, focusing on the role of infrastructure contributions and the key issues and challenges encountered in their application. 

Stakeholders
are encouraged to respond to the discussion questions outlined in the issues paper
by 5 August. The responses will inform the direction and consideration of
potential reform options by the Commission.

A final report
containing reform recommendations will be presented to the Minister for
Planning and Public Spaces, Rob Stokes, at the end of 2020. 

In related
news, developers will be able to defer infrastructure contributions payments in
NSW in a new arrangement to keep projects moving during Covid-19.

A ministerial
direction has been issued and changes made to the Environmental Planning and
Assessment Regulation 2000 to allow developers to pay all contributions before an
occupation certificate is issued, instead of up-front before construction begins.

The deferral
of contributions is applicable for projects with a construction cost of $10
million or more.

Mr Stokes
has assured councils the change is temporary, and that deferred revenue will
not be lost.