Minns’ Plan to Shift Infrastructure Payments Sparks War of Words

“These are commonsense changes that build on our existing reforms which are already delivering real jobs and housing results for the people of NSW,” Scully said.

The development application process would also be reformed.

Page limits on reports would be introduced, conditions imposed on approvals would be standardised and exempt and complying pathways would be expanded.

Housing Industry Association NSW executive director Brad Armitage said that the reforms would “give more families the keys to a home”.

“Infrastructure contributions can be upwards of $100,000 per home in some areas. This is a significant upfront cost that developers must pay before any shovels are in the ground,” Armitage said. 

Planning Institute of Australia NSW president Sue Weatherley welcomed the mooted reforms, but called for oversight and enforcement powers.

▲ The timing of infrastructure contributions may speed up or cruel projects, stakeholders argue.

“Changing when contributions are paid must not delay when infrastructure is delivered,” Weatherley said.

“Getting housing approved is only part of the equation. We need to make sure infrastructure is planned, funded and delivered to support growth.”

Urban Taskforce chief executive Tom Forrest said that unspent contributions are a result of “some councils being either confused, lazy or inept with their management of infrastructure funds and the project management of the delivery of critical projects”. 

Unlocking $900 million immediately and $4.6 billion in total would take time but “will underpin a massive boost for housing supply and community support for that supply,” Forrest said.

However, Local Government NSW president and Inner West Council mayor Darcy Byrne blasted the move, saying it would create “a giant loophole for dodgy developers to mysteriously go belly up at the time they should be paying their developer contributions”.

▲ ‘Dodgy developers’ may be tempted to skip the bill on infrastructure contributions, Byrne said.

“There has been no consultation on this policy,” Byrne said. 

“The government has not spoken to a single council in Sydney or NSW about this plan. Obviously, they have consulted very closely with the development lobby.

“And we know that during Covid when this system was trialled in quite extraordinary circumstances and it wasn't made permanent … councils [had] to chase developers through the courts to get the money that their communities are owed.”

Byrne said that LGNSW had previously put forward its own proposal to the state government, suggesting a $5-billion no-interest loan facility for councils to accelerate enabling infrastructure.

The Minns government said that the proposed reforms would potentially include an extension of financing facilities to support a continuous pipeline of local infrastructure.