The NSW Government has recently released two documents that will reshape how infrastructure is funded and delivered in our region: the Housing and Productivity Contribution (HPC) Works-in-Kind (WIK) Guideline and the Infrastructure Opportunity Plans (IOP).
For our developer and builder clients, these updates represent a significant shift in how you can manage your development obligations.
Here is what you need to know.
What is the Housing and Productivity Contribution?
The HPC is a broad-based charge on residential, commercial, and industrial developments designed to fund essential state and regional infrastructure. While the contribution came into effect in late 2023, the newly released Works-in-Kind Guideline provides a clear framework for proponents to deliver infrastructure directly in lieu of making a monetary payment.
Why is this Important for Developers?
The ability to provide “Works-in-Kind” (WIK) is a strategic tool. Instead of simply paying a fee to a government fund, developers can choose to build the infrastructure themselves. This offers several commercial advantages:
- Control over Timelines: Directly delivering infrastructure can often fast-track a project by bringing forward the services your development needs to be viable.
- Cash Flow Management: It allows you to manage project risks and cash flow by integrating infrastructure costs into your own construction schedules.
- Credit Recognition: In certain circumstances, if the value of your infrastructure works exceeds your contribution obligation, you may be eligible for surplus credits.
The Infrastructure Opportunity Plan (IOP) for Illawarra-Shoalhaven
To support these reforms, the government has published an Infrastructure Opportunity Plan specifically for the Illawarra-Shoalhaven. This plan is essentially a “roadmap” of the state and regional projects, such as roads, transport facilities, and regional open spaces, that are eligible for Works-in-Kind agreements.
Key projects identified in our region include:
- West Lake Illawarra: Major spine road and the Hayes Lane bridge upgrade.
- Nowra-Bomaderry: Intersection upgrades at Princes Highway and Moss Vale Road.
- Dapto and Corrimal: Rail level crossing upgrades to support increased housing density.
How Allen Price Can Assist
Transitioning from a monetary payment to a Works-in-Kind agreement is a detailed process. The NSW Government has established a multi-criteria assessment—including cost-benefit analysis and project readiness—to evaluate every offer.
As your partner, Allen Price is uniquely positioned to guide you through this:
- Town Planning: We can assess your project’s eligibility under the three proposal categories: Works-in-Kind (after consent), Accelerated (before consent), or Innovative (prior to rezoning).
- Civil Engineering: Our team can provide the high-level design and P90 cost estimates required by the Department to progress a formal letter of offer.
- Project Management: We can facilitate the negotiation of State Voluntary Planning Agreements to ensure your infrastructure delivery aligns with your development’s staging.
The introduction of these guidelines is a welcome step towards a more transparent and flexible infrastructure delivery model in NSW.
