Developer levy could reap billions for State Government on major renewal projects like Parramatta Rd

EXCLUSIVE: The State Government could see billions of dollars flowing into its coffers if a proposal for a new developer levy on major renewal projects such as Parramatta Rd goes ahead.

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THE State Government could see billions of dollars flowing into its coffers if a proposal for a new developer levy on major renewal projects such as Parramatta Rd goes ahead.

The Parramatta Rd Open Space and Social Infrastructure Report says the Government will investigate appropriate mechanisms to ensure that key infrastructure is funded and will continue to investigate alternative arrangements.

Leichhardt Labor Councillor Simon Emsley said the council’s planning officers were told a State land tax of $200 per square metre could be introduced on development along the corridor.

“The bigger the development, the more the new tax will flow,” Cr Emsley said.

Councillor Simon Emsley.

“What the Government plans to capture is the surplus profit due to the impact of rezoning on land values.”

Currently, planning section 94 and voluntary planning agreements allow for councils to benefit from developer contributions for infrastructure such as parks or daycare centres.

The Government’s draft strategy for Parramatta Rd outlines its need to provide infrastructure including “classrooms and health services” but does not make clear how funding for this would be levied.

Cr Emsley said it set the stage for the Government to fund federal shortfalls in health and education at the expense of local amenities.

The claim follows a Planning Department decision to support a Joint Regional Planning Panel (JRPP) rezoning approval for Lords Rd, Leichhardt, which council had rejected because the site is zoned industrial.

The Government wrote to council saying any planning proposal for the Lords Rd site should include provision to State public infrastructure in line with the Parramatta Rd draft strategy, although the draft does not make provisions clear.

Cr Emsley said the Planning Department approval sent a message to all seven councils along the Parramatta Rd renewal corridor that council planning powers were under threat.

The Government’s draft strategy for Parramatta Rd outlines its need to provide infrastructure including “classrooms and health services” but does not make clear how funding for this would be levied.

It gives the green light to eight-storey high-rises for the site, south of Leichhardt, while the council’s residential floor space ratios permitted only one to two storeys.

The Planning Department did not comment by deadline.

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