Posted on February 27, 2026 by Lindsay Taylor

Works in Kind Arrangements for Housing & Productivity Contributions Scheme in NSW

The recently finalised Housing and Productivity Contribution Works-in-Kind Guideline dated February 2026 published by NSW Department of Planning, Housing and Infrastructure (‘Guideline‘) sets out arrangements for how developer delivery of State and regional infrastructure is evaluated, prioritised and managed.

Where the Guideline applies

The Guideline applies within the State’s Housing & Productivity regions (Greater Sydney, Illawarra Shoalhaven, Lower Hunter and Newcastle or Central Coast) where a developer seeks to offset a Housing and Productivity Contribution (‘HPC‘) obligation under Division 7.1, Subdivision 4 of the Environmental Planning and Assessment Act 1979 (‘EPA Act‘) imposed as a condition of the grant of development consent under that Act.

What the Guideline applies to

The Guideline applies to proposals for developer delivery of State and regional infrastructure at different stages of the land use planning system, including where:

  • approved development is subject to a condition to pay the HPC,
  • an application for consent for development where the HPC will apply,
  • a planning proposal includes a proposal for developer delivery of eligible State or regional infrastructure.

Infrastructure Opportunities Plans

Works in Kind (‘WIK‘) arrangements pursuant to the Guideline are linked to Infrastructure Opportunities Plans, which have been developed for each Housing and Productivity Contribution area and outline the infrastructure to support NSW Government planned growth via the State’s Urban Development Program.

NSW Government offers for infrastructure delivery

The Guideline states that the Government will invite offers for developer delivery of State and regional infrastructure every 6 months.

Infrastructure delivered in lieu of a monetary contribution must be delivered in the region in which the HPC development will be carried out.

Eligible infrastructure

WIK proposals by developers made before or after the grant of development consent must relate to ‘eligible infrastructure’, that is, infrastructure on the Infrastructure Opportunities Plans.

WIK proposals associated with planning proposals may relate to infrastructure not on an Infrastructure Opportunities Plan at the time of the proposal but must be on a plan prior to a Government decision on the proposal.

Eligible infrastructure types for developer delivery via WIK proposals include:
•  State or regional roads,
•  transport facilities (including active transport and bus infrastructure),
•  regional open space,
•  land dedication for the purposes of state or regional infrastructure.

Ineligible projects generally include:
•  potable water, energy, sewerage, telecommunication services, and strategic planning or design work,
•  local infrastructure items such as local roads, which would be delivered by the relevant council,
•  infrastructure required to otherwise support the development, such as temporary roads, or private roads that would not be identified in a local contributions plan,
•  infrastructure required to make land fit for the end use such as remediation or stabilisation works, evacuation routes or flood mitigation,
•  infrastructure related to a strategic biodiversity requirement or project,
•  state and regional infrastructure that is exclusively delivered by a state agency or state-owned corporation, such as heavy railway or public transport.

Form of agreement for developer delivery of infrastructure

The form of an agreement for developer delivery of infrastructure is linked to the timing of the developer’s WIK proposal.

If a WIK proposal made after the grant of development consent is accepted, a WIK agreement is entered into and does not require public notification.

If a WIK proposal is made before the grant of consent or in connection with a planning proposal, it will be included in a State voluntary planning agreement (‘VPA‘) under Division 7.1, Subdivision 2 of the EPA Act and will be notified in connection with the agreement as required by that Act.

Guiding principles for assessment of WIK proposals

The Guideline sets out the following guiding principles for the assessment of WIK proposals by developers:

  • Strategic alignment – prioritise infrastructure in the Housing and Productivity Contribution regions, in alignment with planned growth including NSW’s local government area housing targets,
  • Evidence-based – decisions will be based on the availability, quality and depth of relevant information in the proposal, and the ability to demonstrate net benefit to Government,
  • Transparent – proposals will be evaluated against clear criteria and agreements will be made public,
  • Flexible – the assessment process will adapt to changes to the annual budget allocation.

HPC contribution offsets & surplus credits

WIK agreements and State VPAs address how any HPC obligation is treated, including if it is fully or partially offset.

The Guideline states that State VPAs will specify how offsets / credits are to be calculated and how they may be used, including any conditions, such as review or expiry timeframes, that may apply.

The Guideline addresses the issue of ‘surplus credits’, that is, where the value of a WIK proposal exceeds the value of HPC contributions applying to a development, in the following manner:

  • no surplus credits will be recognised under a WIK agreement,
  • no more than 50% of surplus offset / credit value will be recognised under a State VPA.

It also states that the value of surplus credits must be within the annual HPC Fund budget allocation for developer delivery of WIKs.

Role of Urban Development Program Oversight Committee

The Urban Development Program Oversight Committee, comprised of senior State bureaucrats, is involved in the WIK proposal process by making recommendations to the NSW Government regarding:

  • the endorsement of Infrastructure Opportunities Plans,
  • developer WIK proposals, 
  • the allocation of HPC funds.

If you have any questions or wish to comment on this post, please email Dr Lindsay Taylor, Senior Partner.

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