NSW Election 2023: People, not councils, to decide how developer cash will be spent

Residents will be empowered to decide how billions in developer contributions will be spent in their area under a Coalition plan to deliver the infrastructure local communities actually need.

Residents will be able to decide how billions in developer contributions are to be spent in their area under a Coalition plan for more parks, pools and libraries.

Under the existing system, developers must make a ­contribution each time they construct a new high-rise or housing development, with council deciding how the funds will be spent.

However, the Coalition has promised to flip the process, allowing the community —— via a Service NSW app — to indicate how the levies will be used via targeted surveys.

The move follows ­evidence some councils were using the funds to build parks hundreds of kilometres away from the building construction site, or spending the levies on projects that were not necessarily the first priority for the community.

The state government estimates councils are sitting on about $3 billion in developer contributions, which will be unlocked as part of the new process.

Dominic Perrottet and Fair Trading Minister Victor Dominello on the hustings on Friday. Picture: NCA NewsWire / Flavio Brancaleone

Premier Dominic Perrottet said the move would empower local communities by giving everyone a say on local community investments and infrastructure.

“Councils play an important role in determining how developer contributions are spent, but we need to make sure communities also have the opportunity to provide input throughout the ­process,” he said.

“This is about ensuring communities can provide feedback on the types of infrastructure they would like to see delivered, such as new parks and open spaces.”

Planning Minister Anthony Roberts said while councils displayed proposed contributions plans on a website for community feedback, those were “incredibly technical”.

The plans were sometimes also presented to the community in a way “in which they appear to already be finalised”.

“We want to create greater transparency between local government and the community when it comes to spending infrastructure contributions, allowing everyone to give feedback before critical decisions are made,” he said.

Local Government Minister Wendy Tuckerman said the online surveys would enrich councils’ decision-making re­garding infrastructure fund­ing and prioritisation.

“As part of this proposed ­reform, councils will be ­required to do a ‘health check’ after four years as development prog­resses, to ensure the existing plan aligns with growth,” she said.

Meanwhile, charities have welcomed the end of no-grounds evictions for renters on periodic leases, which was announced by Mr Perrottet yesterday.

The National Council of Social Service said the move, which it had campaigned hard for, was a step forward, but more action was needed to protect tenants.

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