The reforms will reduce upfront costs for housing developments and support construction jobs by allowing developers to pay local infrastructure contributions later in the construction process, helping get more homes built sooner. Under the reforms, local infrastructure contributions that are currently paid at the Construction Certificate stage will be permanently deferred to the Occupation Certificate stage of development.
Premier of New South Wales Chris Minns said, “New home buyers contribute to their local infrastructure but the system can delay its delivery. These local contribution reforms will make sure communities across NSW get the infrastructure they need as they are growing.”
Property Council NSW Executive Director Katie Stevenson said the reform reflected consistent advocacy the Property Council has pursued over many years through budget submissions, housing policy and research examining barriers to housing delivery. “This commitment is a sensible reform that recognises the role government-controlled costs play in housing delivery, and we encourage the other major parties to match it,” Ms Stevenson said.
“The Property Council has consistently argued that the timing and structure of taxes, charges and infrastructure contributions can have a major impact on whether approved housing projects actually get built.”
“Deferring contributions until later in the development process would reduce upfront financial pressure and help viable projects move from approval to construction and from construction to completion.”
Councils across NSW are currently sitting on a collective balance of more than $4.6 billion in infrastructure contributions – money that could be supporting local jobs, construction activity and the delivery of infrastructure communities need.
As an immediate first step, the Minister for Planning and Public Spaces will issue directions allowing councils to spend more than $900 million currently sitting in their accounts that was collected under now-repealed contribution plans.
Ms Stevenson said the requirement for councils to spend infrastructure contributions within defined timeframes and support to overcome impediments to doing so was also welcome.
Unlocking this funding will help bring forward infrastructure investment, support local construction jobs and deliver the roads, parks, open spaces and community facilities needed to support new housing.
Small businesses will also spend less time filling out paperwork and more time running and growing their businesses, with a re-elected Minns Labor Government boosting productivity by removing the need for full development applications for common activities such as minor renovations, internal fit-outs, changes to trading hours and signage, and making planning approvals simpler where they are still required.
Currently, development applications in NSW can take up to 130 days to prepare and assess and can cost $30,000, sometimes requiring hundreds of pages of documentation and creating unnecessary costs and delays for small businesses looking to get started or expand.
The reforms are part of the Minns Labor Government's broader commitment to lift productivity, support small businesses and make NSW an easier place to invest, build and create jobs.