Posted on June 24, 2011 by Megan Hawley
Reduction in SICs extended past 30 June 2011
In December 2008, the Rees government implemented a policy whereby the state would increase its contribution towards state infrastructure required in respect of new development from 25% of the cost of the infrastructure, to 50% of the cost of the infrastructure. This reduced the contribution to be made by the developer from 75% of the cost of the infrastructure to 50% (Reduction).
The Reduction was due to expire on 30 June 2011.
However, in a media release yesterday, Brad Hazzard announced that the Reduction will apply for a further 6 months.
Developers may have entered into planning agreements which provide for the application of the Reduction to payments to be made before 30 June 2011, but not to payments made after 30 June 2011, or may be currently negotiating planning agreements on the basis that the Reduction will not apply.
Any developers in that situation should seek to have their agreements amended to secure the Reduction for payments to be made in the next 6 months.
The link below is to the 2008 planning circular relating to the Reduction.