UDIA NSW has recently called for urgent action to extend the s7.11 cap in order to ensure the industry with certainty during this unprecedented time. Since September 2016, dwelling approvals in Sydney have fallen off by 46%. This means the supply for housing is decreasing and will drive housing affordability for a new crisis.
NSW Planning Minister, Rob Stokes, announced that more requirements for Council to publish how much they have collected in levies and how much has been spent. Which follows the UDIA NSW’s advocacy on the $2.7 billion currently sitting on the Council infrastructure across Sydney, New Castle and the Illawara. Productivity Commissioner, Peter Achterstraat will review the infrastructure contribution system and recommend a new system to be reported at the end of the year.
“…It is more critical than ever to that the cap on s7.11 contributions must be extended now for four years to enable the industry to adjust to any reform process and enable the sector to bounce back following the COVID-19 crisis.” – UDIA NSW
Currently there are proposed changed that the Department is seeking feedback on :
• Draft planning agreements policy framework. Read more…
• Improving the review of local infrastructure contributions plans discussion paper. Read more…
• Criteria request a higher section 7.12 percentage discussion paper. Read more…
• Draft Special Infrastructure Contributions (SIC) guidelines. Read more…
• Proposed amendments to the EP&A Regulation. Read more…
For more than three years, UDIA NSW has continued to develop a fully costed solution, in which would help reduce infrastructure cost on new homebuyer. Based on the Department of Planning’s 2013 White Paper, A New Planning System for NSW, there are seven principles which received wide agreement as the basis of an infrastructure funding system:
- Simple and Predictable
- Transparency and accountability
- Beneficiary pays
- Avoidable costs
- Cost reflectivity
Blog Post Article credit goes to UDIA NSW
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