NSW Research Update
Infrastructure funding for Sydney’s growth needs big rethink
New research released by the Property Council has revealed the mish-mash of infrastructure charges across Sydney’s growth areas and highlights the need for a better system for funding infrastructure with the charge placed on one dwelling taking up to 27 mortgage repayments to pay off.
Acting Property Council NSW Executive Director William Power has said “Sydney is growing and needs infrastructure, but we haven’t got the right funding system for delivering it. Currently communities in high growth areas are paying high infrastructure costs on their homes and this is not sustainable or equitable.
“At the moment, no one has a complete view of what is being charged and for what outcome across Greater Sydney and this is resulting in higher charges in some areas than others - It needs a rethink, and our recently elected state government needs to tackle this issue as one of their top priorities.
“Planning Reform and infrastructure charges must be the top two priorities for Minister Stokes and the new Department of Planning and Industry to ensure Sydney is growing well.”
The Property Council believes the State Government needs to:
- Conduct an audit and create an online record of all infrastructure charges across Sydney
- Create an infrastructure charges calculator that tells the community or industry what the infrastructure charge on each dwelling will be in a suburb.
- Give IPART (Independent Pricing and Regulatory Authority) greater resourcing and remit to review more contribution plans, review and edit the essential infrastructure list and ensure the community is getting the right infrastructure to support growth from these contributions
Big upside to Quick Planning Wins
Property Council has released research (conducted by Urbis) which shows that ‘quick wins’ can be achieved by making changes to planning system such as finalising state strategic plans, relooking at the process for re-zonings, delivering diverse housing more easily and calculating development contributions, can benefit the State economy, drive down the cost of homes and create jobs.
Some of the research key findings include:
1. By calculating contributions and getting better oversight of their impact – $194m increase in GSP per year and 1,310 additional jobs
2. By improving the process for re-zonings – $2.37 b uplift in GSP per year and 16,701 additional jobs
3. By implementing complying development including the medium density housing code – $213m in GSP uplift and 1,450 additional jobs
4. By finalising our state planning strategies – $3.96b uplift in GSP, 26,800 additional jobs, and increased labour productivity contributing $95 million each year
5. By incorporating technology into our planning system – $17m in GSP uplift each year and cut assessment timeframes by up to 1 week per dwelling
Read more on the research here.