The NSW Productivity Commission has released an issues paper as part of its review into the state’s infrastructure contributions system.
The paper examines how infrastructure is currently funded in NSW, focusing on the role of infrastructure contributions and the key issues and challenges encountered in their application.
Stakeholders are encouraged to respond to the discussion questions outlined in the issues paper by 5 August. The responses will inform the direction and consideration of potential reform options by the Commission.
A final report containing reform recommendations will be presented to the Minister for Planning and Public Spaces, Rob Stokes, at the end of 2020.
In related news, developers will be able to defer infrastructure contributions payments in NSW in a new arrangement to keep projects moving during Covid-19.
A ministerial direction has been issued and changes made to the Environmental Planning and Assessment Regulation 2000 to allow developers to pay all contributions before an occupation certificate is issued, instead of up-front before construction begins.
The deferral of contributions is applicable for projects with a construction cost of $10 million or more.
Mr Stokes has assured councils the change is temporary, and that deferred revenue will not be lost.