Government action on levies

04 June 2010

The Urban Taskforce understands that the NSW Government will be moving to actually enforce its $20,000 per home cap on local council development levies. Details may become available today, or if not today, in the coming days.

We understand the reform plan has the following elements:

  • The NSW Government will implement a $20,000 cap on local government infrastructure levies (Sec 94 levies) payable by developers.
  • In the event of any council seeking an increase above that cap, the Independent Pricing and Regulatory Tribunal (IPART), rather than government, will now review that application.
  • If IPART determines an increase is warranted, the council will then have responsibility for funding the difference, apparently meaning developers will not pay any more than the cap. There is some suggestion that the difference may be funded through a special rate increase, either applying generally or to specific lands affected by the development proposal.
  • Future ordinary rate increases will also be determined and set by IPART and not the Government under new criteria to be finalised with the Local Government and Shires Association (LGSA).
  • A new Land and Housing Supply Co-ordination Taskforce will oversee these reforms and other reforms to planning process. Apparently it will all consider removing obstructions to the release of land and delivery of infrastructure. We are told that it will include independent representatives as well as representatives from key Government agencies including Premiers, Treasury, Planning, Transport and Roads, and other agencies as required.
  • Apparently the Budget (due to be handed down next week) will include an additional $2 million to the Planning Department to release more land and align it more effectively with infrastructure.
  • Sydney Water will accelerate the provision of water infrastructure to selected precincts to deliver the early release of home sites to new residential lots in north west and south west Sydney.

At this stage a media statement or other written material is not available, so the above information should be treated cautiously.

We will advise further when additional details/documentation comes to light.