Councils are outraged at the NSW Government’s attempt to create more transparency for developer donations. 

The NSW Government has gone public with the details of proposed changes, allegedly aimed at reducing the influence of developers in NSW politics - an issue the state has wrestled with for decades. 

The state’s new Environmental Planning and Assessment Amendment (Infrastructure Contributions) Bill 2021 passed the lower house, “buried in other legislation”, according to Local Government NSW President Linda Scott.

The bill gave no guarantees that contributions would be spent where they are collected - a key factor in ensuring fairness and for communities. 

“Infrastructure contributions are made by developers and are a critical co-funding measure to deliver footpaths and cycleways, parks, playgrounds, playing fields, skate parks, basketball courts, libraries, childcare centres and public pools – even street lighting, stormwater and drainage facilities,” Cr Scott says.

“The community expects local infrastructure funds to be invested locally; no-one wants to see infrastructure funds hoarded for potential pork-barreling.”

More than 200 mayors, councillors and general managers have expressed outrage at the proposed reforms – described by the development body Urban Taskforce as a “tax grab”.

LGNSW subsequently launched the Say No To The Contributions Cash Grab campaign, with 67 councils already passing minutes condemning the proposed changes.

“We need the Government to commit in the legislation that infrastructure contributions will be allocated fairly, transparently and locally,” Cr Scott said.

“We need written, legislative guarantees that no council or community will be worse off as a result.

“As these government reforms have switched developer contribution payments to the end of a project, councils need funding to continue their infrastructure program, ensure jobs aren’t lost and parks and playgrounds continue to be built.

“I thank the Minister for continuing to work with LGNSW to ensure no council is financially worse off under these reforms.”

The Property Council of Australia - a major lobby for developers - has welcomed the changes, saying they will make political contributions much easier, cheaper and faster for developers.