Developer levies

23 June 2010

The NSW Planning Minister, Tony Kelly, has spoken in Parliament about some of the detail of the government’s reforms to development levies.

“Councils will need to justify every levy imposed on housing projects by having them reviewed by the Independent Pricing and Regulatory Tribunal,” Mr Kelly said.

This means even residential development levies that are below $20,000 per home will need to be reviewed by the tribunal.

“The key issue, of course, will be what is considered essential infrastructure,” Mr Kelly said.

“In this regard I have had meetings with the Local Government and Shires Associations and different council representatives to discuss infrastructure classifications and transitional arrangements.

“One topic of discussion – and these discussions will continue before I give any further ministerial direction – will be the classification of general infrastructure.

“The discussions are not just about non-essential infrastructure to community.

“What we are talking about is defining what is essential to the commencement of housing construction, and that is why section 94 contributions were designed. “

The full statement by Mr Kelly is available here.