Blacktown Council says NSW Government owes $250m in developer contributions

A shift in government policy has left fast-growing communities in Sydney’s missing out on more than $500 million worth of infrastructure, says Blacktown City Council.

A shift in state government policy has left new communities in western Sydney missing out on more than $500 million worth of infrastructure, says Blacktown City Council.

Blacktown mayor Tony Bleasdale claimed the State Government owed council more than $250 million and if the funding wasn’t delivered huge rate rises could be passed onto the community with the potential of council services being cut.

The missing millions comes from a change in state government policy surrounding developer contributions in November. Since the 1980s, developers paid financial contributions to fund infrastructure as part of the approval process for large residential projects, such as roads, libraries, leisure centres and community sports facilities.

Under the previous scheme, councils were compensated for the difference between the developer’s contribution and the actual cost of the infrastructure.

Delays in assessing developer contribution plans has meant Blacktown Council weren’t able to claim the payments before the scheme was closed in 2021.

The new policy means developer contributions can be used for infrastructure projects in unrelated communities.

Mr Bleasdale said the state government shifting the cost of community infrastructure from developers to rate payers was “outrageous”.

“The state government is unreasonably cost-shifting the responsibility for providing essential community infrastructure from developers and putting it on ratepayers,” he said.

“Developers make huge profits from greenfield developments, they should contribute fully to the cost of community infrastructure such as parks, community centres, libraries, just as they did from 1980 to 2009.

“The state government is now proposing more changes where the NSW Government could regulate to collect a contribution from a development in Marsden Park and spend it in Mosman – this is outrageous.”

Councillor Tony Bleasdale OAM (left) Mayor of Blacktown City, with Councillor Brad Bunting (right) recently elected Deputy Mayor.

A Blacktown Council spokesman said delays in assessing developer contribution plans had caught out a number of councils.

“Despite assurances from Ministers that councils would not be adversely affected by the 2011 policy change, and the fact that all the contribution plans have been approved, the funds have not been forthcoming,” the spokesman said.

The council is now solely responsible for the funding of libraries, leisure centres, community centres and sports facility buildings, with an estimated $250.1 million owed by the state government.

Aerial of an Schofields development. Picture: Sam Ruttyn

However, a Department of Planning and Environment (DPIE) spokeswoman said there was no eligible outstanding funding to be paid to Blacktown Council.

“The council has and is benefiting from nearly $1 billion in funding through state government infrastructure programs to support their growing communities,” said a DPIE spokeswoman.

“This funding is going towards infrastructure supporting homes, including Hambledon Rd in The Ponds, Boundary Rd and McCullough St in Schofields and a new regional sports park in Schofields that will include new sports facilities and playspaces.

“Developer contributions are able to be used by councils to fund the land for new local community infrastructure like parks and libraries,” she said.

Earlier this month Blacktown council advocated for more control surrounding the use of developer contributions at a Local Government NSW conference.