Changes to the NSW infrastructure contributions system could open up billions of dollars of productivity
Sweeping changes to the infrastructure contributions system could unlock up to $12 billion of productivity benefits over the next 20 years, according to a new report from the NSW Productivity Commission to be considered by the NSW Government.
Minister for Planning and Public Spaces Rob Stokes and Treasurer Dominic Perrottet welcomed the report, which lays out a roadmap for the biggest shake-up to the contributions regime in three decades.
“The development industry has been telling us for years that uncertainty surrounding infrastructure contributions was driving up house prices and slowing down progress,” Mr Stokes said.
“Those who complain about growth in Sydney often have the same gripe – too much housing, not enough infrastructure. This report recommends a complete shift in thinking, where land rezoning, infrastructure planning and funding is considered together at the start of the process.
“If the changes in this new report are implemented, these barriers will be removed and development will be coordinated with the right infrastructure.”
Productivity Commissioner Peter Achterstraat’s comprehensive review of the system makes 29 recommendations, including:
Changing the funding mix for more efficient infrastructure delivery;
Linking council rates more closely with population growth;
Developing a digital tool for calculating infrastructure contributions;
Ensuring infrastructure contributions plans are in place upfront during the rezoning process;
Supporting better open space provision through a system for the direct land dedication following re-zoning;
Reforming state contributions so funding goes where infrastructure is required.