Nineteen local councils are defying a NSW state “cap” on local council charges, according to new figures.
?Council levies reaching as high as $80,000 a home are “crippling” efforts to restart privately funded building while often not making it directly into infrastructure coffers, a group representing developers said.
In December 2008, the NSW government said it was capping infrastructure contributions payable to local councils at $20,000 per lot.
However, seven councils are still imposing a levy of $50,000 or more on new homes, new figures by Urban Taskforce reveal.
Yass Valley Council has the state’s highest levy with an impost of $80,000 per home. While Sydney’s highest-taxing council is Pittwater, where the charge is now $62,000 a home. Camden Council charges $59,000 a home while Ku-ring-gai and The Hills both charge $54,000 a home. Hawkesbury Council levies new homes at a rate of $51,000 each while Shoalhaven Council charges $50,000.
Twelve other councils are charging well above the state government’s $20,000 cap, including Blacktown ($44,000), Campbelltown ($41,000), Leichhardt ($40,000), Wyong ($35,000), Liverpool ($31,000) and the City of Sydney ($27,000).
“These charges have crippled efforts to build new houses on the metropolitan area’s edge,” Urban Taskforce CEO Aaron Gadiel said.
“The City of Sydney’s charge on apartment development is unjustifiable and makes it hard to build affordable apartments close to public transport.”
Burwood is currently proposing a new levy on local development activity, including new homes and commercial office development.
“The levy will add 4 per cent to project costs — and is supposed to raise up to $187 million,” Gadiel said.
