Monday 25 November 2013
The Independent Pricing and Regulatory Tribunal (IPART) has published draft benchmark costs to guide councils in setting developer contributions for local infrastructure under the NSW planning reforms.
The draft benchmarks include indicative costs for over 60 key infrastructure items including footpaths, roads, libraries, playgrounds and swimming pools.
Other council services, such as stormwater detention basins that can vary significantly in size and shape, have not yet been benchmarked, but we are seeking feedback on whether it is useful to benchmark these types of items. IPART’s report also suggests methodologies for councils to use in setting those costs individually.
IPART Chairman Peter Boxall said the final benchmarks would guide councils in determining the cost of essential local infrastructure when the cap on developer contributions is removed.
“Under the new system, councils will be able to levy uncapped contributions to fund essential local infrastructure such as roads, open space, community facilities and stormwater drainage,” Dr Boxall said.
“Although these costs will vary across councils, the benchmarks will provide a guide for councils and should give more certainty and consistency for local government, developers and the community.”
Dr Boxall said the draft benchmark costs have been developed by industry experts in consultation with councils and other stakeholders.
“This is a complex, technical review with many stakeholders, and our next step is to consult further on the benchmark costs and other aspects of the draft report before we prepare our final report,” Dr Boxall said.
“This consultation includes a roundtable discussion on 3 December and we will be accepting submissions on the draft report until 17 January 2014. We expect to release our final report in March 2014.
“Ultimately, how the contributions framework will work in the new planning system will be determined by the Government in consultation with the Infrastructure Contributions Taskforce.”
In addition to setting the benchmark costs, IPART has also made draft recommendations for updating the benchmarks, valuing land to set local infrastructure contributions, and mechanisms for resolving disputes between councils and developers.
Further details about these recommendations and the Local Infrastructure Benchmark Costs draft report are available on IPART’s website <http://www.ipart.nsw.gov.au>.
Media Contact: Julie Sheather 02 9290 8403 or 0409 514 643
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