OZschwitz slave pen: Buyers will be paying Council's exorbitant charges

EVERY cent councils charged in developer levies above the $20,000 cap imposed by the State Government would be passed on to buyers of new homes, further weakening the housing market, the Property Council of Australia claims.

The Herald revealed yesterday that the state Planning Minister, Kristina Keneally, had been flooded with more than 100 applications from councils seeking to exceed the cap on levies, with some wanting to charge more than $56,000 a residential lot.

The NSW executive director of the property council, Ken Morrison, said it was "highly irresponsible" for councils to seek such increases in the economic climate because they would be added to the cost of land.

"It beggars belief that councils can push for a $60,000 increase - they're effectively asking homebuyers to front up for local infrastructure," he said. "Housing production is at 40-year lows and housing affordability has become a national economic priority. Slugging new-home buyers … is totally at odds with the first-home buyers' stimulus."

The announcement last year of a cap on developer levies outraged councils that rely on the levies to fund infrastructure such as roads, parks and playgrounds.

Many of the applications to Ms Keneally came from councils with large greenfield sites where there was little or no basic infrastructure, such as Blacktown, Penrith, Baulkham Hills, Liverpool and Camden.

The president of the Western Sydney Regional Organisation of Councils, Alison McLaren, said the alternative to councils applying for the exemptions was that the land would not be developed.

"Councils are responsible for the delivery of basic infrastructure and that comes with a cost," she said. "Western Sydney is paying for the bad planning decisions of the '50s and '60s where communities were built without infrastructure and those councils shouldn't have to pay for those bad planning decisions now."

LNK
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OZschwitz slave pen: Buyers will be paying Council's exorbitant charges PgkowJT

OZschwitz slave pen: Buyers will be paying Council's exorbitant charges PgkowJT

OZschwitz slave pen: Buyers will be paying Council's exorbitant charges

OZschwitz slave pen: Buyers will be paying Council's exorbitant charges

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