On 28 June 2023, the NSW Parliament passed the Environmental Planning and Assessment Amendment (Housing and Productivity Contributions) Act 2023. The Housing and Productivity Contribution (HPC) is part of the contributions reform introduced by the NSW Government to support delivery of timely infrastructure.
The Housing and Productivity Contribution is separate to Council’s Local Development Contributions which will continue to apply.
When will the contribution start?
The Housing and Productivity Contribution will start on 1 October 2023 after the Ministerial planning order is made.
The new scheme will apply to development applications made on or after the commencement date. If a contribution is required, it will be imposed as a condition of development consent. This includes applications for a complying development certificate, as well as any new development application that follows a withdrawal or refusal (see clause 25 of the order).
An application is made once it has been submitted in the NSW Planning Portal and the application fees have been paid.
Where will the contribution apply?
The Housing and Productivity Contribution will apply in the Greater Sydney, Illawarra-Shoalhaven, Lower Hunter and Central Coast regions.
Fairfield is within the Greater Sydney Region and therefore the Housing Productivity Contribution will apply.
What types of development will the contribution apply to?
The Housing and Productivity Contribution applies to development for the purposes of:
- Residential development
- Commercial development
- Industrial development
What will the contribution rates be?
Greater Sydney |
Development Class |
Amount |
Unit |
Residential subdivision
|
$12,000
|
New dwelling lot
|
Residential strata subdivision
|
$10,000
|
New strata dwelling lot
|
Non-strata multi dwelling development
|
$10,000
|
New non-strata dwelling
|
Commercial development
|
$30
|
Square metre of new GFA
|
Industrial development
|
$15
|
Square metre of new GFA
|
When will the payment of the Housing and Productivity Contribution be required to be made?
Residential Subdivision only – the contribution is to be paid before the first subdivision certificate is issued.
For all other types of applications, the contribution is to be paid before:
- the issue of the first construction certificate in relation to the development, and
- if no construction certificate is required for the development – before the commencement of any work authorised by the development consent or complying development certificate.
For larger projects including large greenfield subdivisions and concept development applications, the payment can be divided into stages consistent with the development approval.
How to make the Housing and Productivity Contribution payment?
Payments will be required to be made through the NSW Planning Portal.
What types of development will be exempt from paying a Housing and Productivity Contribution?
The Housing and Productivity Contribution is not required for development that does not generate any additional infrastructure demand. This includes replacement residential dwellings (knock down rebuilds) and refurbishment of existing commercial or industrial developments that does not increase the gross floor area.
The Housing and Productivity Contribution is also not required for any of the following types of development (see schedule 2 to the order):
- public housing provided by on behalf of the Land and Housing Corporation or Aboriginal Housing Office,
- affordable housing that:
–is provided by or on behalf of a social housing provider (within the meaning of the Housing SEPP), or
–is required to be managed by a registered community housing provider as a condition of development consent
- dwellings required to be dedicated, free of cost, for the purpose of providing affordable housing under section 7.32 of the Act,
- supportive accommodation within the meaning of section 34 of the Housing SEPP,
- specialist disability accommodation within the meaning of the Commonwealth National Disability Insurance Scheme (Specialist Disability Accommodation) Rules 2020,
- boarding houses,
- group homes,
- seniors residential care facilities and hostels under the Housing SEPP, or
- development in the Port Botany, Port Kembla and the Port of Newcastle lease areas
What are the Transition Arrangements?
The Housing and Productivity Contribution will be phased in and discounted for the first two years. The following discounts apply at the time the payment is made:
Time period |
Year |
Discount Rate |
Initial period
|
1 October 2023 – June 2024
|
50%
|
Second year
|
July 2024 – June 2025
|
25%
|
Third year onwards
|
July 2025 +
|
0%
|
Will local contribution plans still apply?
Yes, there is no change to the way councils levy local contributions.
Who to contact for enquires?
NSW Department of Planning email: hpc.enquiry@planning.nsw.gov.au