28 June 2023

Communities with high levels of housing growth will soon have access to funding of $1 billion over the forward estimates, and up to $700 million per year beyond that, to invest in and speed up the delivery of vital infrastructure to support homes and jobs.

New housing growth in NSW will now come with more closely connected infrastructure for community needs as the Minns Government’s Environmental Planning and Assessment (Housing and Productivity) Contributions Bill passed the NSW Legislative Council last night.

Minister for Planning and Public Spaces Paul Scully said the reforms aim to address housing supply shortages by dealing with a key bottleneck – infrastructure.

“The former Government left us with the biggest housing crisis this state has ever seen, so we’re taking action to get new home builds moving and supporting infrastructure funding.

“These reforms lock in infrastructure contributions of up to $700 million each year into the future helping to create great places around new housing.

“Our infrastructure contribution reforms set up a stronger system with a fair and consistent charge applied across Greater Sydney, Lower Hunter, Central Coast and the Illawarra-Shoalhaven, to help pay for the infrastructure needed to support growing communities.

“It includes $1 billion over 10 years for grants to local councils for regionally significant facilities like sporting complexes and open spaces.”

The Bill passed both Houses today, despite being opposed by the Liberal and National Parties despite them taking a similar plan to the last election.

“After 12 years of inaction on housing and effectively creating our current housing crisis, the Liberals and Nationals cynically voted against these reforms to better connect homes, jobs and infrastructure,” said Minister Scully.

“They voted against it despite taking a very similar plan to the election only a matter of months ago.”

The new infrastructure contributions scheme replaces the ad-hoc Special Infrastructure Contribution system with a new broad-based charge, called the Housing and Productivity Contribution. The new scheme will not affect the local infrastructure contributions currently paid to councils.

It is intended that the new system will come into effect from 1 October 2023.

More information can be found on the Department of Planning and Environment's website.