Quick nip and tuck for development contributions regime

Download: 2013 PUB BC Quick nip and tuck for development contributions regime - 16 August.pdf

Development contributions will not be removed or capped as a result of the government review following the Productivity Commission inquiry into housing affordability.

But they will be given a legislative nip and tuck in the Government's next Local Government Reform Bill, expected to be introduced later this year.

We run quickly through the proposed changes.

Problem identification

Development contributions can be charged by local councils to recoup some of the capital costs of providing infrastructure services to support new property developments. They can only be charged on growth-related infrastructure investment – not on quality upgrades, maintenance or operational costs.