UDIA NSW supports decision by NSW Govt on IPART rate peg methodology
UDIA NSW has long supported the need to uncap council rates to allow for better funding at the local level, given this is a low rate broad based tax, which will deliver more services and infrastructure for the community. Independent Pricing and Regulatory Tribunal NSW (IPART) review into rate pegging has confirmed this and UDIA welcomes more than $250 million in additional revenue to be delivered to local councils across the state, enabling better quality council services to their communities.
“This is a positive step as some councils, especially those experiencing population growth, have objected to development due to the significant disincentives within the current rating system. The objective to align rating income with population growth to ease growing pains for councils and communities while still protecting residents from dramatic rate rises through the rate pegging system, is a sensible move.” said Steve Mann, CEO, UDIA NSW.
“The recommendations of the NSW Productivity Commissioner into infrastructure contributions were broadly welcomed by UDIA earlier this year, as they have the potential to make a major contribution to fixing the NSW housing and affordability crisis, supporting economic growth and creating jobs.” he added.
The package of reforms include the new rate peg methodology for local infrastructure contributions, regional infrastructure contributions and land value contributions.
The UDIA NSW Council Infrastructure Funding Performance Monitor FY20 identified $3bn from section 7.11 and 7.12 plans or from planning agreements that was held by Councils across the Sydney Megaregion (Illawarra to the Hunter), at the end of FY20. If spent the $3 billion in stored local contributions could be used for capital projects in areas targeted for growth.
“UDIA’S submission recommended that IPART investigate options, through the rate peg amendment, that incentivise councils to use these funds to support infrastructure for place making, which in turn can speed up the delivery of key enabling infrastructure and housing supply “ said Mr. Mann.
Deanna Lane 0416 295 898 or email@example.com.