12 October 2007
The governments $25,000 cut in growth centre infrastructure charges is good news for home buyers according to NSW Urban Taskforce CEO Aaron Gadiel.
The cut follows a report issued by the NSW Urban Taskforce last month revealing the cost of Western Sydney ˜growth centre infrastructure charges was to hit $14.1 billion. The report by the NSW Urban Taskforce revealed that local council infrastructure contributions could add up to $8.5 billion, on top of $5.6 billion already imposed by the State Government.
Todays announcement delivers an extra $2 billion of state infrastructure at no cost to Western Sydney homebuyers.
It also means that home buyers will no longer have to pay for over-the-top council projects such as wellness and massage facilities, beach volley ball courts, yoga and pilates facilities and media/sound studios.
This is great news for struggling families looking to find an affordable home.
The NSW Urban Taskforce has been speaking out on this issue for some time. Were pleased that the Government has heard our message.
These changes will make it easier for developers to sell new residential lots to mum and dad home buyers at an affordable price.
However, the government should have another look at the up-front costs its imposing on the development process.
The new policy means that a developer will still have to pay 25 per cent of the state and local charges up-front, when a development application is granted.
This could happen years in advance of an actual sale of land to home buyers.
This upfront payment will be $40 million for a 200 hectare development.
The financing costs may be too large for some developers to bear. If so, this will mean less homes on the market for Western Sydney families.
Today the State Government also said that it will apply the amended growth centre levy principles everywhere, including when existing urban areas are re-developed.
This means new apartments in Sydney, and new homes in regional release areas, may be hit with a State Government infrastructure charge for the first time, Mr Gadiel said.
The State Government needs to urgently clarify these plans.
The extra costs imposed on homebuyers through an extended levy system will reduce home affordability. It may cancel out the benefits of todays levy reduction.
The NSW Urban Taskforce is a property development industry group, representing NSWs most prominent and important developers, builders and property financiers. The NSW development industrys annual turnover is $35 billion and employs 180,000 people, accounting for six percent of the States total employment. It is the fifth largest contributor to the State economy.
Media Enquires:
Aaron Gadiel,
Chief Executive Officer,
Phone: 0417 477 904 or (02) 9238 3955
