Infrastructure Contributions for Schofields Reach $102,525 Per Home

The Draft Report by the Independent Pricing and Regulatory Tribunal (IPART) for infrastructure contributions for the Schofields Precinct has contributions as high as $102,525 per home says the Urban Taskforce.

 

“Currently the NSW Government is phasing out the cap on greenfield contributions which was $30,000 a home.” Says Urban Taskforce CEO Chris Johnson.  “The incremental increases will lift to $45,000 before being removed totally on July 1, 2020. At this time the developer will have to fund the full amount of the contribution and this will be passed on to purchasers.”

 

“The Urban Taskforce is concerned that no-one in government seems concerned that very large infrastructure levies will be added to house purchase prices in one year’s time. Blacktown Council have added up all the infrastructure costs for the Schofields Precinct and submitted these to IPART. The costs have been reduced by IPART by 10.4 percent but no-one looks at the impact on house prices.”

 

“The big jump in infrastructure contributions will come at the worst time for the slowing housing industry. The NSW Department of Planning’s Housing Monitor for Greater Sydney shows that at September 2016 there were 59,530 housing approvals year to date and the recently released March 2019 approvals have dropped to 42,799 which is a 28 percent drop. Our members indicate that despite a small lift in confidence since the federal election result the market for pre sales of apartments is very slow. On top of this the NSW Planning Minister, Rob Stokes, proposes to remove spot rezoning where more recent state plans take priority over local plans and greater contributions to infrastructure can be made.”

 

“In a recent article in the Australian newspaper economist Robert Gottliebsen expressed amazement at the NSW Government’s proposal to stop spot re-zonings when he said. ‘The NSW Government has dreamt up an unbelievable plan that will halt apartment construction in many areas, potentially for years’ “.

 

“The Urban Taskforce calls on the NSW Government to ensure that someone in the planning system is measuring the impact of government policies on housing prices. The Department of Planning, Industry and Environment must have a Housing Price Auditor to represent the consumers of new homes to ensure they can be affordable for most families. The Auditor should assess the impact of multiple levies from state and local government to ensure that housing costs do not blow out”.

 

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