Stuart Zullo
Liverpool is one of the fastest growing areas in all of Sydney and dare I say Australia too, but there could be problems ahead with the news that the Federal Government has introduced a $20,000 cap on new developer contributions.
The developer contributions are normally used by local councils to spend on basic infrastructure for the area, such as on new roads, footpaths and drainage etc. – all of the things that an area needs to run smoothly.
Without sufficient funds though councils will most likely resort to raising council rates (some predict by 100 percent!) otherwise there is a good chance that councils will go into debt, or worse our communities won’t have the infrastructure provided that we vitally need.
Whilst this development levy cap should in theory help to encourage development, as a lot of developers will have to pay less, there could be the issue of councils not being able to approve or delaying developments if they don’t think they can afford the basic necessities like roads and drainage– with our local area of Edmondson being a prime example.
However councils can apply to the Independent and Regulatory Tribunal to request more than the $20,000 cap, but even if this happens, it is still likely that there will be a rise in council rates.
This is a very complicated subject and there is a lot more that could be said about the issue, but feel free to call me if you have any concerns about the issue.