Wednesday, June 9, 2010

Developer Levy Capped by NSW Government

The state government has imposed a $20,000 cap of developer contributions per lot, effective yesterday, but the levies are only imposed on "essential infrastructure". So far this phrase has not been defined, which makes it rather hard for developers to plan. Even so, the developers are happy with the new rules, because some councils had been imposing levies of $50,000 or more per house.
A spokesman for the Planning Minister says "guidance would be provided to councils within weeks".
Genia McCarrery, head of the Local Government Association says capped levies would result in huge rate increases, particularly in growth areas. Councils would have to spread the cost of developing new land over all the households in the municipality.

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