Overall planning reforms

In 2003, the Minister for Infrastructure, Planning and Natural Resources commissioned a number of taskforces to review key parts of the planning system. The reviews covered:

• Plan making,
  
• Local development assessment,
  
• Developer contributions for local infrastructure under Section 94 of the Environmental Planning and Assessment Act 1979,
  
• Major assessments and infrastructure,
  
• State environmental planning policies (SEPPs),
  
• The Minister's consent role,
  
• Master plans, and
  
• Housing for older people and people with disabilities.
  

Key stakeholders and a planning reform reference group were consulted as part of this process.

In December 2003, NCOSS made a submission to the taskforce responsible for reviewing the system of development contributions under Section 94 of the Act. In that submission we argued that developers who make a substantial profit from major residential and commercial developments should contribute to the provision of community facilities in such areas. NCOSS also advocated that a betterment tax should be introduced to obtain a similar contribution from landowners who benefit from the sale of rezoned land.

Subsequently the State Government has announced a series of far-reaching changes to the planning system. In particular it has said that:

• The number of State environmental planning policies (SEPPs) will be substantially reduced, from around 59 to less than 25.
  
• In future there will be a handful of regional environmental plans (REPs) compared with the present 44.
  
• There will be one local environmental plan (LEP) in every local government area.
  
• Provisions in local environmental plans will be standardized, with less than 25 zones, and less than 240 definitions.

Further details on the overall planning reform agenda are set out on the Department of Planning website.

As far as the social and community services sector is concerned, the biggest effect of the planning reform process is likely to flow from changes to the system of development contributions managed by local Councils and other consent authorities. These changes flow from the Environmental Planning &Assessment Amendment (Development Contributions) Act 2005, which came into force on 8 July 2005.

The amendment Act extends the means by which councils and other planning authorities can obtain and use development contributions. The changes offer two extra ways for development contributions to be obtained, by:

• Voluntary planning agreements (which can include the provision of affordable housing) , or
  
• Fixed rate development consent levies, which can be set as a percentage of the total value of the development.

The traditional imposition of section 94 contributions as a condition of development consent remains as a third option. Other changes provide for joint contribution plans for development projects that cross Council boundaries, and for Councils to borrow funds held in separate Section 94 accounts so as to speed up the provision of essential infrastructure. These changes have generally been welcomed by local government.

NCOSS is disappointed that the legislation does not empower Councils to impose a mandatory levy for the contribution of affordable housing. We have also challenged the Government to clarify the availability of additional recurrent state funding for community facilities, such as neighbourhood centres, constructed by Councils using Section 94 developer contributions.

The Department of Planning has produced a comprehensive set of practice notes on the revised system of developer contributions.

• Warren Gardiner
  NCOSS Senior Policy Officer
  phone: 9211 2599, ext 112
  fax: 9281 1968
  email: warren@ncoss.org.au