Reform of NSW infrastructure charges to ‘unlock $12b in benefits’

NSW infrastructure contributions will be reformed after the State
Government accepted all 29 recommendations of a NSW Productivity Commission
report.

The report, which was released last December, described the
contribution current system as unnecessarily complex and not properly enabling
local governments and the state government to provide the infrastructure
required to support development.

It also said local government rate pegging and the
restrictive “essential works list” was impacting councils’ ability to meet
service needs and residents’ expectations.

Announcing the NSW Government’s response last week, Planning
and Public Spaces Minister Rob Stokes said the reforms will “unlock up to $12
billion in productivity benefits through changes to how public facilities and
services are funded through the planning system”.

“New and growing communities need new roads, parks, schools
and hospitals, and it is imperative industry and communities have a clear
understanding of how these services get delivered,” he said.

Under the reforms, the Government will:

• move towards a principles-based infrastructure
  contributions system based on certainty, efficiency, simplicity, transparency
  and consistency;
• enhance the capacity of councils to support
  growth;
• strike a balance between efficiency, simplicity
  and certainty for local infrastructure contributions;
• make the system more consistent, transparent and
  easy to navigate; and
• better align infrastructure contributions and
  strategic planning and delivery.

The local government rate peg methodology also will be
overhauled under the proposed reforms.

The Department of Planning, Industry and Environment (DPIE) will establish consultation groups to work with local government, industry and the community on implementing the reforms – with opportunities to provide feedback on the implementation of the recommendations.