The NSW Productivity Commission has released a new report finding that changes to the big-ticket infrastructure contributions system could unlock up to $12 billion of productivity benefits over the next 20 years.
Minister for Planning and Public Spaces, Rob Stokes welcomed the Commission’s report, Review of Infrastructure Contributions in New South Wales, from Productivity Commissioner Peter Achterstraat which laid out a roadmap for the biggest shake-up to the contributions regime in three decades.
Mr Stokes said the review into the system was commissioned to fix uncertainty surrounding developer contributions, unlock new housing supply, deliver infrastructure, and drive investment.
“The development industry has been telling us for years that uncertainty surrounding infrastructure contributions was driving up house prices and slowing down progress,” Mr Stokes said.
“Those who complain about growth in Sydney often have the same gripe – too much housing, not enough infrastructure,” he said.
“This report recommends a complete shift in thinking, where land rezoning, infrastructure planning and funding is considered together at the start of the process.”
Mr Stokes said that if the changes in the Report were implemented, barriers would be removed, and development would be coordinated with the right infrastructure.
In his report, Commissioner Achterstraat made 29 recommendations aimed at changing the funding mix for more efficient infrastructure delivery; linking Council rates more closely with population growth; developing a digital tool for calculating infrastructure contributions; ensuring infrastructure contributions plans were in place upfront during the rezoning process; supporting better open space provision; and reforming State contributions so funding went where infrastructure was required.
The Productivity Commission’s 147-page report can be accessed at this PS News link.
