Assisting implementation of a new broad-based state infrastructure contribution

The NSW Government conducted a review of infrastructure funding in NSW to determine whether it meets the objectives of certainty and efficiency while delivering public infrastructure.

The NSW Productivity Commissioner delivered his Final Report in November 2020. The report’s recommendations aim to create certainty about the funding and delivery of infrastructure to support new and existing communities.

In March 2021, the government confirmed it had accepted all 29 recommendations in the Productivity Commissioner’s Final Report, to:

• move towards a principles-based infrastructure contributions system based on certainty, efficiency, simplicity, transparency and consistency;
• enhance the capacity of councils to support growth;
• strike a balance between efficiency, simplicity and certainty for local infrastructure contributions;
• develop a stronger funding base for State and regional infrastructure;
• make the system more consistent, transparent and easy to navigate; and
• better align infrastructure contributions and strategic planning and delivery.

What we did

Atlas worked with NSW Department of Planning, Housing and Infrastructure (DPHI) with implementation of the Productivity Commissioner’s recommendations as they relate to the regional infrastructure contributions and s7.12 development levies framework.

A feasibility analysis and review of the charging methodology by Atlas provided input to design of a charging methodology and rates to inform the contribution policy settings in Greater Sydney and rest of NSW.

The outcome

Legislation was introduced to NSW Parliament and in October 2021 DPHI publicly exhibited the proposed reforms including Atlas’ technical reports.

In June 2023 the Minns Government’s Environmental Planning and Assessment (Housing and Productivity) Contributions Bill 2023 passed the NSW Legislative Assembly. The new bill introduces a new broad-based charge called the Housing and Productivity Contribution and will come into effect from 1 October 2023.