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Key takeaways from government response to Productivity Commission s Review of Infrastructure Contributions in NSW
The government response was released on Friday, 5 March 2021. In summary, the government has accepted all of the recommendations of the NSW Productivity Commission – a somewhat extraordinary outcome.
The government response will require a slew of legislative changes. Some of the key changes are:
Changes to rate pegging: Local councils will be able to grow their rate revenue as their population increases – a logical and long overdue reform which should relieve some of the pressure on developer contributions to cover funding gaps.
Introduction of a “direct land contribution”: This will be a requirement for a landowner whose land is rezoned to pay money, or dedicate land, which will be secured by a charge on the land. The payment/dedication will be required to be made either on sale or development of the land. ....

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