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NSW Government reforms benefit developers at the expense of ratepayers

Published on 19 July 2021

Planning reforms being proposed by the NSW Government will slash a local tax paid by developers and shift the cost onto ratepayers.

The tax currently paid by developers on large-scale projects – known as developer contributions – are used by councils such as the City of Ryde to build vital infrastructure such as new libraries, sporting facilities, car parks, outdoor spaces as well as community halls and facilities.

But under reforms put forward by the NSW Government, the type of community projects that will be eligible for funding from developer contributions will be reduced. In addition, the requirement for contributions for developments greater than $10 million to be paid upfront would be deferred until projects were completed.

If implemented, the changes will result in an estimated loss of $60 million for the City of Ryde over the next five years. Combined with seven other northern Sydney councils, the losses will amount to $171 million over five years.

“These reforms will do nothing but line the pockets of developers and shift the real costs of new infrastructure to mum and dad ratepayers,” City of Ryde Mayor, Clr Jerome Laxale, said.

“Instead of allowing Council’s to tax developers, they want us to tax ratepayers. It’s a disgrace. 

“In a growing city like ours, where development is forced upon us, taxing developers is essential to ensure our infrastructure continues to meet the needs of the community.

“It is only right that developers – who reap huge profits from these developments – pay for new infrastructure and not ratepayers.

“I call on the NSW Government to withdraw these reforms immediately and ensure developers continue to pay their fair share.”

Last updated on 19 July 2021