UDIA NSW is concerned that changes to reforms of the infrastructure contributions package, agreed between NSW Government and the Local Government NSW, will impact feasibility, housing supply and affordability.

“The government will need to offset these increased costs by reducing development costs elsewhere. The process of picking apart the reform is fraught and needs a broader review to assess the impacts of other recommendations and how they will affect feasibilities, ie. Regional Infrastructure Contribution,’ said Steve Mann, CEO, UDIA NSW.

UDIA NSW supported the Productivity Commissioner’s position on the essential works list which stated contributions plans reflect development-contingent costs only. Essentially the Minister has agreed with LGNSW to move away from Recommendation 4.6 and we are concerned with this.

“This type of policy reform focussed on productivity gains is desperately needed in NSW and that is why development was one of the first industries reviewed by the Productivity Commissioner,” added Mr Mann.

Whilst UDIA supports development of place building infrastructure, this should not solely be a developer based cost, which will be paid for by new home buyers it should be covered under other taxation regimes.

The reforms need to strike the right balance between the owners of new homes and community facilities for the wider community.

In relation to the modifications to the package, UDIA supports ensuring that state contributions are spent in the region where they are collected and the use of the blanket rate in the section 7.12 plans.

UDIA Presidents Infrastructure Contributions Taskforce will continue to advocate for a more even balanced contribution system that does not impact negatively on housing supply. This is essential to enable the construction industry to recover from the post pandemic challenges.

”Infrastructure contribution is a finely balanced package, if the government unpicks one part of the package the whole reform could collapse. We think this is an important reform to improve productivity in NSW and we will work with the government to ensure it works as a complete package.” said Mr Mann.

ENDS

Media Enquiries:
Deanna Lane 0416 295 898 or dlane@udiansw.com.au.
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