NSW Indexation of Local Infrastructure Contribution Rates Under Review

The NSW Independent Pricing and Regulatory Tribunal (IPART) has recently called for a review of local infrastructure contribution rates, with a discussion paper available and feedback required by 3 May 2019.

Chair of IPART’s Local Government Committee Deborah Cope said escalating developer contribution rates by a representative index allows them to change broadly in-line with changes to the cost of land and works the council is providing.

“Without indexing contribution rates, councils might not recoup enough revenue to build the infrastructure for future residents,” Ms Cope said.

“To date, most plans assessed by IPART have elected to index contribution rates using the Australian Bureau of Statistics Consumer Price Index.”

“However, in several plans we have recently assessed or are assessing, councils have proposed using a land or property value index to adjust contribution rates for the cost of land in the plan.”

Stakeholder feedback on the options for indexing contribution rates and other issues raised in the paper is due by 3 May 2019. Copies of the discussion paper are available on IPART’s website.