The NSW Government is moving to fix a ‘broken contributions system’ which has been without holistic reform for decades.
5 second summary:
- NSW Government proposes to revise existing contributions through a 3-stream framework: Local Contributions, Regional Contributions and Land Use Planning
- The exhibition package is open for submissions until 10 December 2021
- Changes include optional rezoning uplift contributions and Regional Infrastructure Contributions (RICs) replacing SICs.
NSW’s infrastructure contributions system has long been labelled ‘broken’ with many in the industry calling for reform for some time. The NSW Government introduced a Bill to Parliament in June this year following recommendations made by the Productivity Commission. The Bill is currently awaiting ascent.
Through a new framework, now on public exhibition, the Government proposes to revise many existing contributions through a framework focused on three streams: Local Contributions, Regional Contributions and Land Use Planning.
These streams set out new requirements, considerations and levies to be charged for development in NSW.
- New concept of Land Value Contributions
- New Section 7.12 plans will no longer be percentage based
- Rezoning proposals require a contributions plan upfront
- SICs are to be replaced with a broad-based Regional Infrastructure Contribution (RIC)
- RICs may be accompanied by a Transport Contribution and/or Biodiversity Contribution
Land Value Contributions
The reforms introduce a mechanism to capture uplift at the time of rezoning. This is fundamental shift in the NSW contributions system.