NBN charges delayed

The federal government has announced changes to its Telecommunications in New Developments policy following feedback from the Property Council and other key stakeholders.

In December 2014, the government released for comment a new policy on the provision of telecommunications infrastructure in new real estate developments.

Subsequently, the Property Council led an industry Committee which met with Minister Turnbull and NBN Co’s CEO to consider issues, particularly around the timing and the uncertainty of future costs on backhaul to new developments. 

The government has subsequently announced revisions to the policy:

· Charges for in-estate infrastructure will continue to apply to new developments accepted by NBN Co from 1 March 2015. However, because of notification requirements, these charges will only be collected from the second half of the year.

· Charges for backhaul and end-user connection have been delayed and will now come into effect from 1 July 2015 to provide the development and communications sectors with more time to adjust to the new requirements. A number of other transitional arrangements in relation to backhaul will also be put in place.

“The Property Council welcomes the government’s decision to delay additional NBN charges for many new housing developments,” said Nick Proud, executive director – Residential at the Property Council of Australia.

“We commend the government for genuinely engaging in a consultative process with industry on this policy and for taking our concerns on board.

“New housing developments require long lead times and detailed financial planning to get off the ground.

“The changes to the policy announced by the government gives the industry more time to adjust to the new requirements and go some way to mitigating concerns that existing or highly advanced projects may have been delayed.

“Given the pressing need to bring more new housing onto the market to put downwards pressure on prices, avoiding such delays will help keep the supply pipeline moving.”

“The delay in charges also means industry is able to look closely at any issues for new developments around the new backhaul cost policy and have the opportunity to ensure that supply is not adversely affected,” he said.

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