NSW Premier Morris Iemma has announced that state and local infrastructure levies on new housing in Sydney’s growth centres will be cut by up to 40%, or $25,000, per lot.
The Property Council of Australia’s (PCA) NSW executive director Ken Morrison said the move to rein in levies on new housing “very welcome” and will help Sydney’s affordability equation.
“The Government has taken back funding responsibility for building schools and hospitals, which is what they should do,” Morrison said.
“They’ve also taken an important step to rein in what local councils can use Section 94 contributions to fund, bringing it back to essential projects rather than a fanciful wish list.”
Morrison said the decision by NSW was long overdue, with NSW facing “a dire housing situation” with construction levels at record lows.
He believes the Urban Improvement Fund – which will hold state and local levies – should improve infrastructure delivery times in the growth centres.
“We welcome the fiscal discipline the Government has injected into the process to provide greater efficiency and equity, and for boosting their own funding contribution by $2bn,” Morrison said.
“The new timeframes and accountability is an improvement on the current system and should lead to faster delivery of infrastructure projects.”
