Opinion
Residents to cop brunt of NSW development sting
A new tax on developments will help the NSW government to maintain a social licence to increase density in infill areas. But it is owners and renters who will wear the cost.
Matthew CridlandContributorThe NSW government last week made changes to the state’s Environmental Planning and Assessment Act to introduce a Housing and Productivity Contribution. It is a new tax on property developers that will apply to development applications (including for State Significant Developments) made on or after October 1. The government estimates the contributions will raise $700 million a year when fully implemented.
Premier Chris Minns has been clear that he supports higher and denser development projects in Sydney. This runs a political risk of the government being seen as beholden to property developer’s interests. Perhaps in part to address this, a Statement of Public Interest relating to the new contributions and tabled by the government states that one policy objective is to allow the government to “maintain a social licence to increase density in infill areas”.
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