Local councils pushing back on levies

21 July 2010

Sixteen councils say they will refuse to process applications for new house and land sub-divisions in protest at the NSW State Government’s new $20,000 “hard” cap on developer levies.

The ban includes councils in major growth areas in Sydney’s west and stretches south to Yass.

The councils have begun a strong campaign to overturn the cap. The cap means councils cannot levy residential developers more than $20,000 a home for new drainage, roads, lighting and sewerage in new estates.

“Growth councils will be sending out rates notices that will itemise the enormous rate increases, to show how the Government is shifting money from residents to developers’ pockets,” Local Government Association NSW president Genia McCaffery is reported to have said.

The council coalition includes Blacktown, Camden, The Hills, Hawkesbury, Campbelltown, Holroyd, Pittwater, Ku-ring-gai, Penrith, Wollongong, Lake Macquarie, Liverpool, Wyong, Maitland and Leichhardt.

“Because of the cap on development levies, infrastructure will be deferred or cancelled and rates will need to rise dramatically,” Ms McCaffery said.

Camden Mayor Chris Patterson claims that in a new release of Spring Farm, in Camden, south-west Sydney, rates would triple the area average – more than $3,300 a year.

“A new resident in the Spring Farm release, for example, would ultimately pay over $100,000 in higher rates over 30 years than would a resident of the existing South Camden area,” Mr Patterson said.

The State Opposition says the government’s position is “hypocritical” and “untenable”.

The government is currently considering the councils position and is expected to announce a more detailed policy by the end of the month.