On October 1, the NSW Government will be introducing the scheme which will phase in an additional State-level infrastructure contribution – between $10,000 and $12,000 – on all dwellings including duplexes, townhouses and apartments, as well as on commercial and industrial development.
Councillor Charbel Abouraad said that same flat rate would apply across greater Sydney, regardless of local markets … ”for example a new apartment in Bankstown will be subject to the same contribution as a new apartment in Bondi, despite significant market differences”.
“Similarly, mums and dads building a duplex will be subject to the same rates as institutional developers,” he said.
“There needs to be consideration on the impact of this flat rate on communities across Sydney – and it should not come at the expense of our community having the capacity to develop their properties.
“A sliding scale should be considered. This approach should give regard to local markets and capacity to pay.”
Cr Abouraad was also concerned there was “no clear infrastructure plan”, and the funds collected in Canterbury Bankstown could be spent anywhere in Greater Sydney.
“The council is subject to tight regulations around how it can collect and spend infrastructure contributions. We expect the same from the State Government,” he said.
The NSW Department of Planning said the contributions would go towards the provision of state and regional infrastructure needed to unlock development and support forecast growth, such as roads, parks, hospitals and schools, and will also be provided to support councils in delivering infrastructure that supports housing and productivity.
Build cost hike unfair on locals
CANTERBURY Bankstown Council has called for assurances from the State Government that funds from its new Housing and Productivity Scheme will be spent locally and it won’t disadvantage mum and dad home builders.
