ABSTRACT

The principal developer contributions in New South Wales are N-NDOs for municipal-level infrastructure. These are made in accordance with a municipal infrastructure contributions plan. They must have a demonstrable nexus in terms of location and timing with the development itself. N-NDOs for affordable housing can also be levied in some parts of Sydney. Voluntary planning agreements, a form of NDOs, are available to capture additional public benefits where planning rules are varied so that the community can share in part of the uplift in land value. A special N-NDO can be levied in “declared” areas such as urban expansion areas for regional infrastructure normally provided by the state government. Special legislation for a major current PPP also allows N-NDOs, but development controls are adjusted to reflect the level of the N-NDOs. Overall, there has been a reluctance to embed a comprehensive value capture mechanism; instead, a fragmented regime of state and local developer contributions has resulted.