25 Aug 2023

New Regional Contribution Framework now in place, to commence 1 October 2023 with Housing and Productivity Contributions (HPCs).

Renamed ‘Housing and Productivity Contributions’ (HPCs)further detail has now been released outlining how the contributions will work. Here are some key facts about the new contribution framework: 


The new framework applies to the full ‘Six Cities Region’ – being Greater Sydney, Illawarra-Shoalhaven, Lower Hunter and Central Coast.  This includes many areas not currently covered by a ‘Special Infrastructure Contribution’ levy (SIC).


The State Government is seeking to collect contributions over a much larger area, providing a more consistent, and broad base approach. It intends to collect $600m annually to deliver regional infrastructure. Regional infrastructure includes: State funded active transport, transport, education, health, emergency, justice, open space and environmental conservation.

How much?

  • Phased introduction 

Introduced from 1 October, the following discounts are proposed:  

1 October 2023 – June 2024 – 50%  

July 2024 – June 2025 – 25%  

July 2025 onward – 0%, full contribution   

  • Special Infrastructure Contributions (SIC)   

Existing SICs will be replaced – some from 1 October 2023 and others from 2026.   

Transition on 1 October 2023  

Transition by 1 July 2026  

  • Bayside West  
  • St Leonards and Crows Nest  
  • Gosford City Centre  
  • Wyong Employment Zone  
  • Warnervale Town Centre  
  • Illawarra – Shoalhaven  
  • Frenchs Forest  
  • Western Sydney Growth Areas  
  • Western Sydney Aerotropolis 

*The Pyrmont Peninsula Metro Special Contribution Area will remain in place, for the purpose of collecting contributions towards the Sydney Metro station.  

The Pyrmont Peninsula transport project component will receive a 25% discount for payments made by 30 June 2024. 

When is a contribution ‘locked in’ and ‘payable’?  

The short answer is prior to a construction certificate being issued, as expressed in a condition of development consent. (refer Section 7.28.)

The terms for standard consent condition wording are set out in clause 23 of the new draft Ministerial Planning Order that has been published by DPE (https://www.planning.nsw.gov.au/sites/default/files/2023-08/epaa-housing-and-productivity-contribution-order-2023.pdf). 

The terms to be included by consent authority or certifier are specified in Clause 23 of the draft Ministerial Order.

What land uses are exempt?  

Land uses to be exempt from the contribution are outlined in the  Ministerial Order and include public housing, seniors housing, affordable housing, supportive accommodation, specialist disability accommodation, boarding houses, group homes and development in port lease areas..  

For the purposes of contributions, the Ministerial Order establishes a new definition for commercial development Refer Schedule 1 of the Order.  

A new 20-year ‘Infrastructure Opportunities Plan’.  

A new Infrastructure Opportunities Plan will set out both growth projections and infrastructure projects that will be eligible for funding in the various regions (Greater Sydney, Illawarra-Shoalhaven, Lower Hunter and Central Coast). These plans will be led by the state and with input from stakeholders including industry and council.

What’s happened to transport and biodiversity components?   
(ie. the former ‘TICs’ and ‘BICs..’) 
The bill sets up the framework for these to operate in the future.  

–  section 7.26 (f)(ii) of the Bill for transport project components.  

–  Section 7.31 of the Bill for biodiversity contributions  

For now, Pyrmont has been established with the Transport component – further areas in due course 


From the 1st of October, the Strategic Biodiversity Component will be effectively turned on for biocertified areas – further detail can be found within the Implementation Guideline and Schedule 3 of the Ministerial Order. 


Click to enlarge

Key links 

The Department of Planning and Environment has released this brief guide on the Housing and Productivity Contributions

Implementation Guideline.

Draft Ministerial Order

Urbis has previously provided industry updates to keep clients informed, with previous summaries available here. 


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