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.
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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.
From here, don’t hesitate to reach out to have a chat about a particular project or portfolio.
