An overhaul of the state’s infrastructure contributions system is coming to a head, despite concerns it could lead to rate rises and a loss of community infrastructure.
Councils believe the infrastructure contribution rule changes threaten to defer and reduce critical developer payments to councils and are advocating for the value of the developer contributions to cover the cost of increased local infrastructure required to meet the needs of new residents.
It is estimated that the move could undermine billions worth of critical infrastructure projects across the state.
Almost two dozen Mayors from across Sydney have joined a public campaign by the NSW’s peak body for councils, Local Government NSW to express grave concerns about the future of community infrastructure, if the NSW Government proceeds with the changes.
Despite City of Parramatta Council and Lord Mayor Bob Dwyer being vocal of their concerns, the Council has declined to join the campaign.
Local Government NSW President Linda Scott said the Government’s Environmental Planning and Assessment Amendment (Infrastructure Contributions) Bill 2021 threatens to reduce critical contributions paid by developers towards the costs of vital community infrastructure as communities grow and more housing is developed.
“The State Government’s dangerous legislation threatens to take us back to the bad old days of suburbs with no drainage, and communities with no parks, by allowing developers off the hook from providing essential infrastructure and services to ensure liveable communities for our future,” she said.
City of Parramatta Councillor Phil Bradley, who has been vocal in his opposition to the changes, said he was disappointed that Council would not be taking part in the campaign.
“I think the residents and ratepayers will be extremely disappointed that the City of Parramatta Council has decided not to support Local Government NSW’s request to call on the NSW government,” he said.
“This ratepayer disappointment will turn to anger if this cut in Councils fair share of excessive development billion dollar windfalls results in high rates increases.”
A City of Parramatta Council spokesperson said the Council is working with the State Government to get a better understanding of the proposed changes and potential impacts.
“At this stage, the draft regulations have not been released and therefore it is not possible to accurately assess any potential impact on the City of Parramatta,” the spokesperson said.
“Developers need to continue to make a reasonable contribution towards new and improved infrastructure to support growth.
“We will continue to advocate for our community, along with other councils, to ensure we have the infrastructure we need to support our growing community.”
The State Government remains firm that the changes are necessary to reform the system.
Troy Dodds is Parra News' Managing Editor and Breaking News Reporter. He has more than 20 years experience as a journalist, working with some of Australia’s leading media organisations. In 2023, he was named Editor of the Year at the Mumbrella Publish Awards.