Posted on June 19, 2025 by Lindsay Taylor, Frances Tse and Taylor Finnegan

ALERT – Draft Housing and Productivity Contribution Scheme Works-in-Kind Guideline Released by NSW Government

The NSW Government has today released the proposed ‘Housing and Productivity Contribution Scheme Works-in-Kind Guideline‘ (Draft Guideline) and is inviting public submissions on it until 17 July 2025.

The Housing and Productivity Contributions Scheme (HPC Scheme) is established under Subdivisions 4 and 5 of Division 7.1 of the Environmental Planning and Assessment Act 1979 and Ministerial Planning Orders made under those provisions.

The HPC Scheme currently applies to residential, commercial and industrial development on land in the Central Coast, Greater Sydney, Illawarra-Shoalhaven and Lower Hunter regions through the Environmental Planning and Assessment (Housing and Productivity Contributions) Order 2024 (HPC Order 2024).

The HPC Scheme replaces the previous special infrastructure contributions (SIC) scheme and enables the NSW Government to collect housing and productivity contributions from developments in those regions to fund state and regional infrastructure.

Under Part 3 of the HPC Order 2024, a housing and productivity contribution is ordinarily made as a monetary contribution. However, clause 18(2) allows a proponent of development to which the HPC Scheme applies to meet their contribution obligation (or part of it) by dedicating land or carrying out of works (Works-in-Kind) with the agreement of the Minister.

The Draft Guideline sets out how Works-in-Kind proposals will be assessed, prioritized and managed under the HPC Scheme.

The key points in the Draft Guideline and in additional information contained in the FAQ section of the planning portal website relating to the Draft Guideline are as follows:

  • The NSW Government will set a non-cash budget for a portion of the Housing and Productivity Fund to support the delivery of Works-in-Kind under the HPC Scheme. The non-cash budget may limit the number of Works-in-Kind proposals selected for delivery per financial year.
  • Works-in-Kind proposal will be competitively assessed using a structured assessment process. The guiding principles for the assessment are strategic alignment, evidence-based, transparent, efficient and timely, and flexible and fair.
  • Infrastructure Opportunities Plans prepared by the NSW Government will be used to identify and sequence the infrastructure required to support housing and industrial land targets. Only regional and state infrastructure projects listed in the Infrastructure Opportunities Plan are eligible to be delivered as Works-in-Kind under the HPC Scheme.
  • If a project is not included in the Infrastructure Opportunities Plan a proponent can submit an expression of interest for it to be added to the Infrastructure Opportunities Plan.
  • Works-in-Kind under the HPC Scheme will be delivered under works-in-kind agreements entered into between the NSW Government and the proponent.

The Draft Guideline is on public exhibition until 17 July 2025.

We will post further and in more detail once additional details of the Works-in-Kind arrangements relating to the HPC Scheme are released, or when the Draft Guideline is adopted.

You can read the Ministerial Release here.

If you have any questions about this article, you can leave a comment below or email Dr Lindsay Taylor or Frances Tse.

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