Revised developer contribution policy to improve infrastructure delivery

16 July 2019

In a keynote speech delivered this morning, Planning Minister Rita Saffioti has released new proposals to guide contributions for infrastructure and confirmed the McGowan Government would not be proceeding with a value capture model.

Draft State Planning Policy 3.6 Infrastructure Contributions will incorporate changes to the existing system, to improve delivery of essential infrastructure to new and existing suburban communities.

Infrastructure contributions are a long-standing mechanism where the development sector works with State and local governments to deliver essential infrastructure to accommodate urban growth.

The revised policy aims to bring greater fairness, accountability, transparency and consistency to the system, including providing the community with improved access to infrastructure delivery information. Contribution limits are also proposed, to diminish the impact on housing affordability.

During the policy review, the State Government also explored options for a value capture funding mechanism for State infrastructure, including METRONET.

Originally it was planned that value capture would generate a portion of funding to help deliver METRONET, however, the need for this funding has reduced as the McGowan Government has successfully secured additional Commonwealth funding than planned.

The current housing and property market conditions were also considered as part of the decision to not proceed with value capture.

Comments attributed to Planning Minister Rita Saffioti:

"The careful planning and co-ordination of infrastructure is fundamental to the economic and social wellbeing of any community.

"So along with the houses and jobs, we need to provide roads and water; schools and hospitals; parks and footy ovals; libraries and public transport - all the essential elements that transform a development into a community.

"This is a shared responsibility, but our current approach lacks consistency and transparency.

"We're looking to put an end to that, and I encourage everyone with an interest in the delivery of essential infrastructure to consider the proposed changes and have their say.

"As part of this work, we assessed value capture options, and have decided to not proceed with a model, to help support the local property and housing market.

"The cost of administration and the insufficient revenue return didn't make it worthwhile, especially when considering the higher than expected Commonwealth funding secured for METRONET."

 

--ENDS--

 

Source:  Western Australia Government - www.mediastatements.wa.gov.au

Contact: Minister's office - 6552 5500

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