Indexation of local infrastructure contribution rates

In July 2019 IPART published an Information Paper that explains how we will assess the provisions for indexing contribution rates in local infrastructure contributions plans that are submitted to us for review. It explains what we think councils should consider when deciding how to index contribution rates between the adoption of a local infrastructure contributions plan, and a revision of that plan. The Information Paper was informed by feedback from councils and the development industry on our April 2019 Discussion Paper.

IPART assesses local infrastructure contributions plans that propose contributions above $30,000 per lot or dwelling in identified greenfield areas and $20,000 per dwelling in other areas. We must assess whether the contributions plan meets the criteria set out in the Department of Planning and Environment’s Local Infrastructure Contributions Practice Note (Practice Note).

One criterion is whether “the proposed development contribution is based on a reasonable estimate of the cost of the proposed public amenities and public services.” As part of our assessment of reasonable costs, we consider whether the council’s proposed method of indexing contribution rates is reasonable.