Written by
28/08/2023
Last week, the Planning Department released the Housing Productivity Implementation Guideline and draft Environmental Planning and Assessment (Housing and Productivity Contribution) Order 2023.
The new ‘housing productivity contribution’ replaces the Special Infrastructure Contribution provisions in NSW planning legislation.
The government is seeking to collect contributions over a much larger area, providing a broad-based approach. It intends to collect $600 million annually to deliver regional infrastructure, which includes State funded active transport, transport, education, health, emergency, justice, open space and environmental conservation.
The new contribution applies to development applications made on or after 1 October 2023. If a housing and productivity contribution is required, it will be imposed as a condition of consent, which will extend to applications for a complying development certificate and any new development applications that follow a withdrawal or refusal.
Strategic Biodiversity Component – CPCP
The contribution rates in each region and the class of development are set out below:
| Region | Development class | Amount | Unit |
| Greater Sydney | Residential subdivision | $12,000 | New dwelling lot |
| Residential strata subdivision | $10,000 | New strata dwelling lot | |
| Non-strata multi-dwelling development | $10,000 | New non-strata dwelling | |
| Commercial development | $30 | Square metre of new GFA | |
| Industrial development | $15 | Square metre of new GFA | |
Central Coast Illawarra-Shoalhaven Lower Hunter | Residential subdivision | $8,000 | New dwelling lot |
| Residential strata subdivision | $6,000 | New strata dwelling lot | |
| Non-strata multi-dwelling development | $6,000 | New non-strata dwelling | |
| Manufactured home estate | $6,000 | New dwelling site | |
| Commercial development | $30 | Square metre of new GFA | |
| Industrial development | $15 | Square metre of new GFA |
Development that does not generate any additional infrastructure demand is not subject to the new contribution. This includes replacement residential dwellings (knock-down-rebuilds) and refurbishment of existing commercial or industrial developments that do not increase gross floor area. Public housing, affordable housing, supportive accommodation, specialist disability accommodation, boarding houses, group homes and seniors residential care facilities and hostels are also exempt from the new contribution.
For applications relating to residential subdivision only, the contribution must be paid before the first subdivision certificate is issued. For all other applications, the levy is payable prior to issue of the first construction certificate.
The contribution will be phased into the planning system in the following manner:
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