Infrastructure Contributions Reform in Queensland
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- Elisabeth Burke
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1 Ian Wright BA LLB (Hons) MURP Partner Planning Government Infrastructure and Environment Susan Cleary BA LLB Lawyer Planning Government Infrastructure and Environment 26 July v1
2 Introduction New infrastructure contributions regime Sustainable Planning (Housing Affordability and Infrastructure Charges Reform) Amendment Act 2011 commenced 6 June 2011 Draft State Planning Regulatory Provision (Adopted Charges) commenced 1 July 2011
3 Introduction Significant practical implications Capped infrastructure charges Restricted infrastructure contribution powers
4 Introduction Themes of paper Capped infrastructure charges Restricted infrastructure contribution powers Response of local governments and SEQ distributor-retailers Practical implications from a legal and policy perspective Public policy considerations
5 Capped infrastructure charges Implementation of reform Adopted Charges SPRP Existing financial contribution powers excluded Adopted infrastructure charge Adopted infrastructure charges resolution
6 Capped infrastructure charges Adopted Charges SPRP Adopted infrastructure charges schedule maximum adopted charges Priority infrastructure areas for local government areas Relevant proportions of adopted charge for local governments and SEQ distributor-retailers
7 Capped infrastructure charges Previous financial contribution powers excluded Conditioned financial contribution under a planning scheme policy Levied infrastructure charge under an infrastructure charges schedule in a priority infrastructure plan Levied infrastructure charge under a regulated infrastructure charges schedule Levied infrastructure charge for water and wastewater infrastructure under SEQ infrastructure charges schedule
8 Capped infrastructure charges Adopted infrastructure charge If no adopted infrastructure charges resolution lesser of: Maximum adopted charge Charge under previous infrastructure contributions regime of a planning scheme policy, infrastructure charges schedule or regulated infrastructure charges schedule If an adopted infrastructure charges resolution stated infrastructure charge
9 Capped infrastructure charges Adopted infrastructure charge Respective proportions If no adopted infrastructure charges resolution as agreed or stated in Adopted Charges SPRP If an adopted infrastructure charges resolution the proportions under the previous infrastructure contributions regime; or as agreed or stated in Adopted Charges SPRP
10 Capped infrastructure charges Adopted infrastructure charge Excluded development Development under a State Resources Act Development under Urban Land Development Authority Act 2007 Development in a declared master planned area unless the adopted infrastructure charges resolution states that an adopted infrastructure charge is to be levied
11 Capped infrastructure charges Adopted infrastructure charges resolution Adopted infrastructure charge and discount Adopted infrastructure charge less than: o maximum adopted charge in Adopted Charges SPRP o respective proportions of local government and SEQ distributor-retailer Discount for existing usage
12 Capped infrastructure charges Adopted infrastructure charges resolution Trunk infrastructure planning matters Trunk infrastructure planning trunk infrastructure networks standards of service establishment costs Relevant to development assessment conditioned land and work contributions calculation of offsets
13 Restricted infrastructure contribution powers Conditions for financial contributions Conditioned payment under a planning scheme policy removed Conditioned payment for development outside priority infrastructure area in Adopted Charges SPRP or priority infrastructure plan Conditioned payment for development inconsistent with assumptions in priority infrastructure plan
14 Restricted infrastructure contribution powers Conditions for land and work contributions Land dedication notices Conditions powers conditions under planning scheme policy removed conditions for development infrastructure if no stated trunk infrastructure conditions for non-trunk infrastructure if stated trunk infrastructure conditions for necessary trunk infrastructure if stated trunk infrastructure Land dedication notice for trunk infrastructure
15 Infrastructure contribution powers Financial contributions No adopted infrastructure charges resolution Planning scheme policy Infrastructure charges plan (Noosa) Priority infrastructure plan (Gold Coast) Adopted infrastructure charges resolution Trunk infrastructure not included in resolution Trunk infrastructure included in resolution Trunk infrastructure included in PIP (or ICP) Conditioned financial contribution under planning scheme policy (s345, 347, 848 and 880) Note 1 Infrastructure charge for trunk infrastructure under infrastructure charges schedule or regulated infrastructure charges schedule (s863 and 880) Note 1 Infrastructure charge for trunk infrastructure for water service and wastewater service under SEQ infrastructure charges schedule (s755k) Note 1 Infrastructure charge under adopted infrastructure charges schedule (s629, 648A and 755KB) Conditioned contribution for cost of development outside priority infrastructure area (s650 and 755R) Conditioned financial contribution for cost of development inconsistent with planning assumptions of priority infrastructure plan (or infrastructure charges plan) (s650, 755R and 863) Land and work contributions Conditioned land and work contribution under planning scheme policy (s345, 347, 848 and 880) (26) Conditioned development infrastructure (s626a and 755J) Conditioned non-trunk infrastructure (s626 and 755J) Conditioned necessary trunk infrastructure (s649 and 755Q) Dedication notice for land contribution (s637 and 755L) Note 1: This power applies to development in a declared master planned area to which the local government has not made an adopted infrastructure charges resolution which states that an adopted infrastructure charge is to be levied for the development (s648e).
16 Response of local governments and SEQ distributor-retailers Summary of responses Participating local governments and SEQ distributorretailers other than Ipswich City Council and QUU agreed their respective proportions Adopted infrastructure charges resolutions made generally by urban and regional local governments Adopted infrastructure charges resolution only includes trunk infrastructure planning matters if local government advanced in preparation of priority infrastructure plan Gold Coast City Council rewarded for its priority infrastructure plan
17 Response of local governments and SEQ distributor-retailers Review of Draft SPRP Adopted infrastructure charges schedule with maximum adopted charges for different development classes that are to apply uniformly throughout Queensland Priority infrastructure area for each local government area Relevant proportions of adopted infrastructure charges stated for Ipswich City Council and Queensland Urban Utilities
18 Practical implications Planning scheme policies Only relevant to: Calculation of adopted infrastructure charge if no adopted infrastructure charges resolution Determination of proportions of adopted infrastructure charge if no agreement between local governments and SEQ distributor-retailers
19 Practical implications Transitional arrangements Previous infrastructure contributions regime if local government has exercised powers and issued a decision notice or infrastructure charges notice New infrastructure contributions regime if local government has not exercised powers has made no decision or has refused a development
20 Practical implications Development assessment Assess development application against trunk infrastructure planning matters to determine conflict with planning principles: Prematurity of development; Compromised trunk infrastructure plans; Compromised desired standard of service.
21 Practical implications Specific conditions powers Condition must be: o o Within specific conditioning powers Otherwise relevant or reasonable Specific condition powers for trunk infrastructure limited to: o o o Existing trunk infrastructure is inadequate Future trunk infrastructure is necessary Existing or future trunk infrastructure is on premises Specific condition powers for other development infrastructure limited to: o o o Infrastructure internal to premises Infrastructure to connect premises to external infrastructure Infrastructure for the safety or efficiency of infrastructure network
22 Practical implications Offsets for land and work contributions No guidance as to: Calculation of value Indexation of value Refunds of unused offsets
23 Practical implications Indexation of adopted infrastructure charges Indexation is required to preserve the value of an adopted infrastructure charge from the time of levying to the time of payment Guidance is needed from the State government
24 Public policy considerations Capped infrastructure charges Bad public policy Maximum adopted charges reflect the very generalised average cost of trunk infrastructure provision across Queensland No relationship to the marginal cost of trunk infrastructure provision in different parts of Queensland Public policy approach is contrary to landmark reports: o o o o 1993 Industry Commission Report 2004 Productivity Commission Report 2009 Henry Tax Review 2011 Productivity Commission Report
25 Public policy considerations Capped infrastructure charges Public policy implications Price signal to encourage economic efficiency and effectiveness emasculated Cross subsidies from ratepayers and customers (taxpayers) to landowners and developers Fringe or remote greenfield areas encouraged Cost of living pressures increased regressive impacts
26 Public policy considerations Housing affordability Infrastructure charges set above the cost of provision of trunk infrastructure (i.e. a tax) do affect housing affordability Infrastructure charges linked to the cost of provision of trunk infrastructure (i.e. user charge) do not affect housing affordability No persuasive evidence that existing infrastructure charges operate as a tax However capped infrastructure charges will result in infrastructure charges that are taxes which will impact adversely on housing affordability in some areas
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