23 June 2011
Planning and Infrastructure Minister, Brad Hazzard, today announced the existing “concessional period” for the special infrastructure contributions will be extended for six months – moving the expiry of the period from 1 July to the end of the year.
The purpose of the extension is to allow a review of the special infrastructure contribution and “related issues”.
The review will examine the efficiency of the state government levies and “determine the best approach to supporting industry in building new homes”.
“The new Government wants [developers] to do business in NSW and reverse Labor’s legacy of the lowest housing starts in 50 years,” Mr Hazzard said.
“Our message to housing providers over this six months extension is – come and build and this government will back you!”
Nonetheless Mr Hazzard has warned that “it may be a case of ‘use it or lose it'”.
From the Urban Taskforce’s perspective, the deferral is welcome. We’ve been making strong representations about the special infrastructure contribution at every level of government, and it is pleasing to see that there is a government focus on tackling this issue.
Nonetheless, as we have highlighted publicly, a mere six month extension cannot prompt significant new greenfield investment to take place. Nonetheless, it is better that the government defer this increase, rather than jack up levies while simultaneously conducting a review.
Today’s media release from the Urban Taskforce is available here.
The Government’s media release is available here.
