A $20 million annual impact for NSW councils?
The effect of NSW’s unindexed $20,000 and $30,000 section 7.11 thresholds
NSW’s development contribution thresholds have remained fixed in nominal terms since the current policy framework was introduced in 2010.
Over the same period, the cost of acquiring land and delivering local infrastructure has increased substantially. For councils with section 7.11 contribution rates above the applicable threshold, the result is a growing gap between the contribution calculated under the plan and the amount that can generally be imposed without entering the IPART review pathway.
This InfraGrowth Planning briefing examines the possible scale of that gap and whether the existing review pathway provides a practical alternative.
What the briefing covers
- A City of Sydney case study examining the estimated effect since 2010.
- A comparison of selected section 7.11 contribution rates across NSW.
- Analysis of reported council section 7.11 and section 7.12 income for 2024–25.
- An indicative statewide estimate of contribution capacity suppressed by the thresholds.
- Scenarios showing how the impact could develop over the next decade.
- Consideration of the IPART essential works framework and possible reforms.
The statewide estimates are intended to indicate the possible scale of the issue. They are not audited measures of council income foregone. Actual effects vary between councils and depend on the applicable plan, contribution rates, development activity, dwelling mix, credits, exemptions, planning agreements and payment timing.
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There is no charge to access the briefing. Your details will help InfraGrowth understand which parts of the sector are interested in the analysis.
InfraGrowth Planning is an independent planning practice established by Jonathon Carle, specialising in infrastructure planning, development contributions and the connection between strategic planning, funding and delivery.
Connecting vision, funding and delivery.
Founder + Director
InfraGrowth Planning
jonathon@infragrowth.com.au
www.infragrowth.com.au
Media enquiries: Please contact Jonathon Carle at jonathon@infragrowth.com.au .
Comments and corrections
The analysis has been prepared to encourage informed discussion about the thresholds and their effect on local infrastructure funding.
If you identify a material error or omission, or have a relevant council example that may assist the analysis, I would be pleased to hear from you. There is no expectation that recipients provide detailed comments.