‘Developer Contributions: How should we pay for new local infrastructure?’

Developer contributions for local infrastructure are inconsistent, lack transparency and have broadened in scope, adding more to the cost of new homes and potentially impeding new housing supply, according to the paper.

Through this report, the National Housing Finance and Investment Corporation (NHFIC) compares developer contribution policies across states and territories, exploring scope, timeliness, transparency, policy design and funding considerations.

Key Findings

  • NHFIC draws on case studies and shows developer contributions typically account for around 8 to 11 per cent of total home construction costs, amounting to as much as $85,000 per dwelling in New South Wales, $77,000 in Victoria, and $42,000 in Queensland.
  • NHFIC’s government and industry consultation suggests developer contributions can be highly variable and unpredictable, which can lead to unanticipated costs throughout the development process affecting margins and impeding new housing supply.

Report

Read the web report here.