DEVELOPER INFRASTRUCTURE CONTRIBUTIONS
The NSW Government has introduced amendments to the payment of Infrastructure Contributions. Below is a summary of the changes together with some of BPN's concerns.
The full document can be read here.
Recent changes to the EP&A Act allow the Minister to make directions on the timing of infrastructure contributions payment. This temporarily requires councils to defer the payment of local infrastructure contributions and levies until at least the issuing of the first occupation certificate. This applies up to 25.09.2020 but may be extended to 25.03.2021.
Conditions of consent (whether new or existing) that defer infrastructure contributions payments to before the first occupation certificate is issued do not expire with the direction. After 25.09.2022, contributions must be paid before the issue of the first construction certificate.
This Direction also applies to relevant development consents granted before the Direction took effect. Consents are modified to allow local contributions and levies to be paid before the issuing of the first occupation certificate.
The directions do not apply to:
a) developments with an estimated construction cost of less than $10 million
b) developments involving subdivision of land, whether or not they also involve construction
c) complying development.
The EP&A Regulation has been amended to require certifiers to obtain evidence from a council or the Department that there are no outstanding infrastructure contributions before issuing an occupation certificate on any part of a development.
The EP&A Regulation amendment requiring proof of contributions payment will continue to operate beyond the COVID-19 pandemic prescribed period for applicable developments over $10 million which require an occupation certificate.
HOWEVER, BPN is concerned that the delay in payment of Infrastructure contributions will impact on the provision of local infrastructure by local councils. The retrospectivity of these amendments is especially concerning. Councils may also have already costed infrastructure contributions from approved developments into their budgets. This could mean local infrastructure construction would be further delayed. BPN believes investment in private construction should not delay public infrastructure construction.