Planning and Other Legislation (Make Developers Pay) Amendment Bill 2023
Plain English Summary
Overview
This bill would have removed state-imposed caps on infrastructure charges that local governments can levy on property developers. It lapsed at the end of the 57th Parliament and did not become law. Introduced by Greens MP Michael Berkman, it aimed to give councils the flexibility to charge developers the true cost of providing infrastructure like parks, footpaths, and flood mitigation in growing communities.
Who it affects
Property developers would have faced potentially higher infrastructure charges on new developments. Local governments would have gained more flexibility to fund community infrastructure, and existing ratepayers in growing areas would benefit from developers covering a fairer share of infrastructure costs.
Key changes
- Removes the State Government's power to cap the maximum infrastructure charge local governments can levy on developers
- Allows councils to set infrastructure charges based on actual costs of providing trunk infrastructure
- Retains the requirement that automatic increases to levied charges must not exceed the Producer Price Index for roads and bridges
- Makes consequential amendments to South-East Queensland water legislation to align with the removal of the cap
Bill Journey
▸Committee15 Nov 2023View Hansard
Referred to State Development and Regional Industries Committee
The Housing, Big Build and Manufacturing Committee examined this private member's bill, which proposed removing the Maximum Allowable Charge (MAC) cap on infrastructure charges that local governments can levy on developers for trunk infrastructure. The committee recommended the bill not be passed, citing concerns that removing the cap could increase new housing costs and reduce housing supply. While stakeholders broadly agreed the MAC framework needed modernisation, most argued that simply removing the cap was too blunt an approach and called for a more nuanced range of short- and long-term funding solutions.
Key findings (5)
- Stakeholders broadly agreed the MAC framework needed modernisation to reduce the trunk infrastructure funding gap, but most opposed the complete removal of the cap as too blunt an approach.
- Industry groups warned that removing the MAC would create uncertainty for developers and investors, potentially leading to stricter lending terms, higher borrowing costs, and reduced housing supply.
- The Local Government Association of Queensland supported the bill's intent but advocated for a broader range of infrastructure funding solutions rather than simply removing the charge cap.
- The Department of Housing, Local Government, Planning and Public Works cautioned that any changes without transparent evidence risk impacting new housing supply during an existing housing crisis.
- The committee found no breaches of fundamental legislative principles and was satisfied the bill was compatible with human rights under the Human Rights Act 2019.
Recommendations (1)
- The committee recommends the Planning and Other Legislation (Make Developers Pay) Amendment Bill 2023 not be passed.
Committee report tabled