Residents to cop brunt of NSW development sting

The NSW government last week made changes to the state’s Environmental Planning and Assessment Act to introduce a Housing and Productivity Contribution. It is a new tax on property developers that will apply to development applications (including for State Significant Developments) made on or after October 1. The government estimates the contributions will raise $700 million a year when fully implemented.

Premier Chris Minns has been clear that he supports higher and denser development projects in Sydney. This runs a political risk of the government being seen as beholden to property developer’s interests. Perhaps in part to address this, a Statement of Public Interest relating to the new contributions and tabled by the government states that one policy objective is to allow the government to “maintain a social licence to increase density in infill areas”.