Bayside Council is one of 23 metropolitan councils that have launched a campaign demanding the NSW Government abandon its plan to divert local government infrastructure funds into State revenue.
"This money should go towards projects that benefit the local community support our growing and changing population. The State Government should not be allowed to use our funds to finance projects elsewhere," Bayside Mayor Joe Awada said.
Local councils levy developers to help pay for local infrastructure such as playgrounds, sports fields, libraries, and parks.
"Developer levies must be spent where they are raised so new developments are accompanied by appropriate investment in the surrounding area."
"The NSW Government is trying to take half of local government developer contributions and is suggesting that rates be significantly increased to make up the shortfall. This is not acceptable to our community" Bayside Mayor Joe Awada said.
The councils have published an open letter in the Sydney Morning Herald and Daily Telegraph, to raise public awareness of the detrimental impact this levy change will have on their communities.
The letter reads:
Dear Premier,
As you know, the NSW Government imposes housing targets onto local Councils to accommodate Sydney's population growth.
And in turn, our communities rely on our Councils to deliver the essential facilities and infrastructure needed to support this growth, and make people's lives and local environments better.
This infrastructure includes everything from roads and footpaths, to sports fields, parks and netball courts, to playgrounds, pools and libraries.
We can only deliver these facilities because we are able to collect contributions from property developers to help fund them.
However, the changes now being planned by the NSW Government will divert a large proportion of these developer contributions away from Councils and into a Treasury-controlled fund, with no clear accountability or transparency of how it will be spent.
And the Government is proposing Councils raise rates to make up the revenue we are losing.
This breaks the nexus between where contributions are made and where they are spent. This threatens the ability of every Council to deliver much-needed new community facilities, and transfers that burden onto our ratepayers.
Premier, you are forcing us to choose between cancelling projects and raising rates. And this is at a time of pandemic-induced financial hardship for many people in the state.
On behalf of our communities, we urge that you withdraw the changes currently before Parliament.
The signatories are: Bayside, Blacktown City, Blue Mountains, Burwood, Campbelltown, Canterbury Bankstown, City of Sydney, Cumberland, Hawkesbury, Hunter's Hill, Inner West, Lane Cove, Liverpool, Mosman, North Sydney, Penrith, Randwick, Ryde, Strathfield, Sutherland Shire, Waverley, Willoughby and Woollahra.
Modelling by the Centre for International Economics (CIE) estimates that the Infrastructure Contributions Bill (2021) would give the NSW Government an additional $793million per year in revenue (averaged over 20 years).
Local Councils will only be able to levy local development for 'essential infrastructure' and will be left with shortfalls in funding for playgrounds, open space, sports and community facilities unless they raise rates.
This transfers the cost of new Community infrastructure to support new development from the developers to ratepayers.
More Information
Find out more and voice your concern to local members of Parliament.
