Today’s big cuts to infrastructure development levies will boost housing and business construction and save jobs in NSW, according to the Property Council of Australia.
Premier Nathan Rees and Planning Minister Kristina Keneally today announced a major overhaul to infrastructure levies charged to new housing and business construction, with reductions of up to $64,000 per dwelling.
“Today’s announcement is just what the NSW economy needed,” said NSW Executive Director Ken Morrison.
“These big cuts to infrastructure levies will be a significant stimulus to new housing and business construction, and will save jobs in NSW.”
“Coupled with recent reductions in interest rates, this decision will make projects viable which simply weren’t viable yesterday.”
“Government seems to have finally understood that adding costs to housing production simply makes housing unaffordable.”
“Housing construction in NSW is at historic lows and this decision will mean that developers can produce housing at a price people can afford to buy.”
Mr Morrison noted that some important details were yet to be clarified, such as how exceptions to the $20,000 local levy cap will be determined, application to projects which already have planning approval, and accompanying reforms to voluntary planning agreements.
“It is vital that state and local governments now take on their responsibility to fund the infrastructure needed to support new growth,” Mr Morrison said.
“This decision – while important – will not be a panacea for the state’s economy which will continue to slow over the coming year.”
“More reforms will be needed to ensure NSW retains its ‘premier state’ tag and the Government needs to be prepared to take tough decisions.”
Media contact: Ken Morrison, NSW Executive Director on 0412 233 715.