A $99 million funding commitment for essential suburban infrastructure in the NSW Budget demonstrates how serious the NSW Government is about delivering the infrastructure needed for new housing areas, according to Planning and Infrastructure Minister Brad Hazzard.
The funding will be provided to councils under the Local Infrastructure Growth Scheme to help cover the gap between what councils can charge developers in infrastructure levies and the actual cost of constructing infrastructure, such as new local roads and stormwater drainage.
"This funding demonstrates the Government's commitment to assist local government to help deliver the new housing the State needs, Mr Hazzard said, adding that more than 20,000 homes in the Hills and Blacktown communities are among those to benefit from the scheme.
Mr Hazzard said that while the state's new planning system will include a fairer, more transparent and more economically feasible system of infrastructure contributions to help unlock the supply of new housing, the government is committing money to address infrastructure funding shortfalls in the meantime.
"This funding ensures that the supply of new housing is not blocked by exorbitant developer contribution charges, while still making sure the necessary infrastructure gets built," the Minister said.
According to the government, the Local Infrastructure Growth Scheme will mainly benefit councils with new land releases, due to the greater costs associated with providing infrastructure to previously undeveloped land, but is also available for new housing developments in existing urban areas.
To be eligible for funding, a council must have its contributions plan reviewed by the Independent Pricing and Regulatory Tribunal of NSW (IPART), showing that a gap exists between what it is able to charge and what the reasonable infrastructure cost will be.