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Media Release - Ministers Office Sydney: 4 May 2005 STATE GOVERNMENT PLANNING REFORM TO BUILD BETTER LOCAL INFRASTRUCTURE The NSW Government tonight took a major step toward achieving a piece of planning reform that will lead to better local infrastructure and facilities passing unopposed through the Legislative Assembly, said Minister for Infrastructure, Planning & Natural Resources, Craig Knowles.
“Developers have long been required to pay a levy to the local Council for the development of important local infrastructure projects.
“However the way the levy has calculated, collected and used has been lacking in flexibility.
“Tonight the Government put forward a Bill that will dramatically change how what is known as Section 94 Developer Contributions are levied and used.
“This will help to free up around $800 million that is currently being held in Council accounts, and provide a better and more certain legal framework around options for collecting and spending the contributions,” said Mr Knowles.
Section 94 Developer Contributions are used by Councils to provide vital local infrastructure like link roads, drainage, childcare and parks.
“The Carr Government has a strong and detailed plan to reduce the red-tape in our planning system.
“This latest proposal is a major part of that reform process.”
The main features of the Government’s proposed changes to Section 94 include:
- More flexibility in how the contribution is levied. Under the proposed changes, the contribution may be set at a fixed rate, or as a percentage of the development project’s cost (set at one per cent). A system of Voluntary Planning Agreements will also be introduced under which a Council may agree that a developer makes a contribution ‘in kind’ such as land for public use or provides other public facilities.
- Councils will be able to borrow between Section 94 accounts so that the development of priority infrastructure can be ‘fast-tracked’.
- Where the impact of a development project flows across Council boundaries, joint contribution plans will be allowed to ensure infrastructure in all affected Council areas benefits.
“We are extremely grateful to all the industry groups, stakeholders and Council delegates who have worked with us on preparing this Bill, from the original Taskforce, which was set up to review Section 94 in 2003, right through to the more recent consultations to finalise the Bill.”
Mr Knowles said the Government’s proposed changes had received considerable support including:
The Local Government Association: We…express our support for the State Government’s new Development Contributions legislation which is currently before the Parliament of NSW.
…Local Government strongly supports the retention of section 94 as an important mechanism for funding urban infrastructure and community services. We are therefore pleased to see the proposed legislation introduce greater flexibility in the system using alternate mechanisms such as voluntary planning agreements and flat rate levies, and measures aimed at improving its operation and accountability.
The Urban Development Institute of Australia: UDIA NSW believes that the amendments will dramatically improve the timely delivery of quality facilities and infrastructure to communities...Planning agreements in particular offer an opportunity for the efficient delivery of infrastructure during the construction of developments, which will ensure that many facilities are provided prior to occupancy.
The NSW Urban Taskforce: These reforms will introduce a new system for development contributions in NSW that works for local government, state agencies and the development industry – and provides improved transparency and accountability in delivering benefits to the community.
The Property Council of Australia: We congratulate the Government on bringing forward these important reforms to the development contributions system in NSW.
© NSW Department of Infrastructure, Planning and Natural Resources
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