Discussion paper lacks detail
In conjunction with release of the Hunter Regional Plan 2036, Minister Stokes has commenced pre-consultation with industry and local government on a Hunter Special Infrastructure Contribution (SIC) Plan.
A Discussion Paper has been published that sets out potential infrastructure projects in the Lower Hunter totalling $9.2 million. Unfortunately, it lacks any detail on how a future Hunter SIC Plan would impact the commercial feasibility of new housing supply.
The Discussion Paper also contemplates;
- Apportioning infrastructure costs to development on land outside urban release areas.
- Expanding the range of suitable development beyond residential and industrial.
- Applying contributions from residential development on a per-lot basis.
- Applying contributions from industrial development on a GFA basis.
- Applying contributions from other development on a unit-cost basis.
- Applying contributions to all development based on capital investment value.
The current method for charging infrastructure contributions has acted as a new tax on greenfield residential development since 2011. And despite the current policy remaining in draft form and unadopted for over six years, state planners continue in its application as if it were government policy.
Charging of infrastructure contributions is currently;
- Wildly inconsistent across the Hunter.
- Provides no clear nexus to timely infrastructure provision.
- Distorts the housing market.
- Makes land development – particularly on the urban fringes and in sub-regional centres – uneconomic.
In submissions to Government and representations to the Planning Minister, the Property Council will be advocating for the Hunter Development Corporation to be handed control and coordination of a transparent, consistent and supportive developer contributions scheme embedded within a 20-year Integrated Infrastructure Schedule that includes 5 year snapshots.