Development Contributions - Who Pays?

The Government has recently announced a comprehensive review of the development contributions that Councils charge for new sections and developments. This is a key part of its work programme on housing affordability, with development contributions identified as one of the key reasons why section prices have more than doubled in the past decade.

The Development Contributions Review Discussion Paper (click here to view) sets out a range of possible reform options, including capping the charges, tightening the criteria, reinstating appeals, providing discounts for types of housing, and abolishing the charges altogether.   

Changes of this sort are likely to be welcomed by developers for whom development contributions represent a significant and largely unavoidable cost. However, it remains to be seen whether the proposed changes will compromise the Council’s ability to deliver infrastructure and services without passing on the cost directly to ratepayers.

Submissions are due on the Discussion Paper with the Department of Internal Affairs by 15 March 2013.

Posted on Tuesday 19th February, 2013 at 09:34 am