What is changing?

Broad Planning Reforms
Two significant changes are currently being considered by the state government in respect to the ongoing role and function of local government in the planning system.  The first change is a package of sweeping changes to the way land use planning, consent and development approval is done throughout the state.  The changes are detailed in a Discussion Paper titled ‘Improving the NSW Planning System'.

Many of the changes of are great concern to local government and have the potential to further complicate the planning system rather than reform it.  They also have the potential to radically change our streetscapes and reduce the ability for the community to be involved in planning and assessment process for new developments.  For an analysis of the proposed changes and a range of alternative solutions please click here or read the NSROC Submission on the Planning Reforms.

Development Contributions
The second proposed change relates to a proposed new framework for developer contributions.  In October 2007 the State government released Planning Circular PS 07-018. The information in the circular is ambiguous and incomplete and relies on policy, guidelines and legislative changes that are yet to be developed.  However the main thrust of the change is to restrict the ability of local governments to levy developers by applying a ‘cap’, to restrict what types of facilities the funds can be spent on, and for some councils, to take away control of the funds and place it in the hands of Treasury.    

This means that communities will have to take more development and more people but less money will be available to build the facilities needed to support the growing population.  The NSROC councils believe that developers should contribute some of their profits towards building facilities to make communities sustainable.  A more detailed analysis on the impact on Local Government of the proposed framework for development contributions can be found here.

How Development Contributions have been collected and spent in the
NSROC Region

In the past 10 years the NSROC region has grown by 35,588 residents.  In order to accommodate that growth some $228.6 million dollars in development contributions were collected and $203.1 million were spent on community and regional infrastructure.  This equates to just over $6000 per person.

Contrary to what the Planning Minister asserts, the NSROC councils are not stockpiling development contributions as just over 11% remains unspent (although there is a variance from council to council as a result of individual expenditure plans).

Seeing through the Spin The State Government has put forward a variety of reasons for introducing these unpopular and controversial changes.  The primary reason for the proposed changes to development contributions suggested by both the NSW State Treasurer Costa and the Minister for Planning, Frank Sartor, is to improve housing affordability.  Other reasons include a lack of faith in the ability of councils to spend the money properly, the notion that councils are ‘stockpiling’ the development contributions, and that social infrastructure required to accommodate additional residents should be borne by the whole community and not just by new residents.  Put simply these arguments are false.  Local Government has a long track-record of delivering the infrastructure which the community needs and wants.  It should be remembered that the development contributions are collected according to a Section 94 Plan that has been developed in consultation with the community and in an open and transparent manner.  The vast majority of the community infrastructure in the towns and cities of New South Wales have been built and funded by local government.  These include town halls, community centres, sportsfields, parks, childcare centres, libraries, environment centres, tourist facilities, aquatic parks and many other key assets which the community depends upon.  Most of these have been built on time and on budget, planned with significant community involvement and built at a time and in place of the community’s choosing. If the state government was genuine about reducing housing costs it could remove stamp duty from the purchase price or it could reduce the state levies on new development.  By targeting the relatively modest proportion of the costs associated with providing vital community infrastructure the Planning Minister simply risks creating more overcrowded communities while at the same time putting more money into the pockets of developers. Illustration: Buddy Ross

Northern Sydney Regional Organisation of Councils (NSROC) is comprised of seven councils in the northern part of Sydney which have voluntarily come together to address regional issues, work co-operatively for the benefit of the region, and
advocate on agreed regional positions and priorities.