Housing and Productivity Contribution
A Housing and Productivity Contribution (HPC) applies in the Greater Sydney, Illawarra Shoalhaven, Lower Hunter and Central Coast regions.
Contributions collected help to deliver essential state infrastructure such as schools, hospitals, major roads, public transport infrastructure and regional open space.
The contribution applies to development applications for new residential, commercial and industrial development (including complying development and state significant development).
The HPC is separate to the contributions that developers pay to councils for local infrastructure, such as local roads, drainage and local open space. There is no change to how councils collect their local contributions.
A Ministerial planning order commenced on 1 October 2023 and gives effect to the Housing and Productivity Contribution. It sets out:
- where the contribution applies
- the types of development it applies to
- how much the contribution rates are
- the timing of when the payment is due
- the types of development that are exempt.
The Ministerial planning order sets the base contribution charge, as well as a transport project component that has replaced the Pyrmont Peninsula Metro Special Infrastructure Contributions Area.
We are updating the Ministerial planning order
We have prepared an updated Ministerial planning order (PDF, 968 KB) to respond to feedback following the implementation of the initial order from 1 October 2023.
The updated order comes into effect on 1 July 2024.
The revised order integrates residential construction into a single HPC class ‘medium or high-density residential development’.
The timing of payments for this class will be made at the earliest opportunity, which will be on construction.
The revised order clarifies that the subdivision of existing developments does not attract a charge. This simplifies calculations and achieves greater consistency across the development categories.
The updated order also introduces a strategic biodiversity component to help fund conservation actions that offset development impacts under the Cumberland Plain Conservation Plan (CPCP). This was delayed from the initial order that commenced on 1 October 2023.
The component comes into effect on 1 July 2024. Developers will be required to pay the CPCP strategic biodiversity component for residential, commercial and industrial development on CPCP certified land.
This component will be applied to applications (including for complying development) that are:
- new applications lodged on or after 1 July 2024, or
- applications that have been lodged after 17 August 2022, but are pending on 1 July 2024.
Further information on the strategic biodiversity component can be found at CPCP biodiversity contributions.
We have also made changes in the revised order to streamline the conditions of consent. View the proposed revised conditions of consent (PDF, 196 KB).
You can provide feedback on the revised Ministerial planning order to [email protected] by 5pm Friday 28 June 2024.
Implementation Guide and frequently asked questions
For more information about the Housing and Productivity Contribution:
Note: these documents relate to the Ministerial planning order commenced on 1 October 2023.
Councils are required to include reference to the Housing and Productivity Contribution in planning certificates for land where it applies. Suggested wording can be found in the frequently asked questions.
More information
Further information on the implementation of the Housing and Productivity Contribution is also available on the NSW Planning Portal.
For any specific enquiries relating to the Housing and Productivity Contribution, email [email protected]