New LEP and levy for Burwood

10 May 2010

The NSW Government has today changed the law to permit a new four per cent levy on project costs in Burwood town centre and the Burwood Local Environmental Plan (Burwood Town Centre) 2010 came into force.

4 per cent levy

The Environmental Planning and Assessment Regulation 2000 was amended to allow Burwood Council to impose a four per cent levy on development exceeding $250,000 in cost.

Councils currently have the power to impose a percentage-based levy on development, but outside of six “regional cities” this levy has always been capped at one per cent.

The four per cent levty is the highest percentage development levy in Sydney and means that Burwood’s development charges will exceed those of the Sydney CBD (1 per cent), Parramatta CBD (3 per cent), Liverpool CBD (2 per cent), Wollongong CBD (2 per cent) and Newcastle CBD (3 per cent).

There is no requirement for money raised to be spent on infrastructure required for new housing and workplaces. Expenditure of the levy is linked to a $187 million wish list of projects drawn up by Burwood Council.

Bankstown and Willoughby councils are both also seeking to waive the existing one per cent cap.

The state government’s change to the law authorising the new 4 per cent levy is here.

Burwood Town Centre LEP

The new town centre LEP is novel in that the main zone used is the “mixed use” zone. However, discriminatory floor space ratios are used, to favour commercial office development in key areas. In these areas the floor space ratio for residential development is capped between 3:1 and 2:1.

The newly published Burwood Local Environmental Plan (Burwood Town Centre) 2010 is here.