Amid a housing supply and cost of living crisis, NSW Government has changed the Environmental Planning and Assessment Act introducing a new 'Housing and Productivity Contribution' that will immediately cost developers thousands. Undoubtedly the additional cost will be funnelled back to the purchasers.

From 1 October 2023, the upfront construction tax will apply to all development applications in NSW.

The contribution will cost developers $12,000 a house and $10,000 a unit in Greater Sydney. Housing contribution will also apply to industrial, commercial and retail developments on a per square metre basis.

Vincent Young is still coming to grips with this very surprising legislative amendment.

Read more here:

https://www.parliament.nsw.gov.au/bills/Pages/bill-details.aspx?pk=18435

https://www.planning.nsw.gov.au/sites/default/files/2023-05/housing-and-productivity-contribution.pdf

https://www.afr.com/property/residential/residents-to-cop-brunt-of-nsw-development-sting-20230706-p5dm3u#:~:text=The%20NSW%20government%20last%20week,on%20or%20after%20October%201.

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