Everything You Need to Know About Sydney Water’s Infrastructure Contributions

Everything You Need to Know About Sydney Water’s Infrastructure Contributions
2/5/23

On Friday 28 April, Sydney Water opened its public exhibition for the reintroduction of infrastructure contributions for drinking water, wastewater and stormwater services to help recover the cost of providing infrastructure to new developments.

The project page for the infrastructure contributions explains:

“As the population grows, Sydney Water’s area of operations continues to expand as development spreads into new areas. This requires us to build and operate new water, wastewater and stormwater infrastructure. We will also incur additional costs as we augment the existing network to cope with increased density in established areas. In Western Sydney, an improved infrastructure contributions framework will better support us to provide integrated water services to meet the NSW government's objectives of a cool, green, sustainable parkland city.”


Realistically, there are only two ways to fund new infrastructure – Sydney Water funding or Developer contributions.

Sydney Water are proposing the reintroduction of developer infrastructure contributions, as they explain this will ensure:

  • Existing customers do not face higher costs as a result of new developments,
  • Transparency about the different infrastructure and servicing costs associated with higher cost regions,
  • The potential for competition in the provision of water and wastewater services to new developments is enhanced.

As these changes have been through various stages of community engagement, Sydney Water have already received valuable feedback. They have identified there are improvements developers require to meet their expectations of the services offered.

As a result, Sydney Water have proposed:

  • Certainty of timeframes for developer applications including receipts, screenings, analysis and review processes as well as completion and finalisation processes.
  • Certainty of timeframes for the delivery of growth servicing infrastructure.

As a developer, now is the time to write a submission to join the discussion on water infrastructure contributions. This is a two way conversation, and your submission can help Sydney Water better understand the full implications of making this change.

Background

Infrastructure contributions were previously in place until 2010, when they were removed by the Independent Pricing and Regulatory Tribunal (IPART). However, Sydney Water is now seeking to reintroduce this mechanism to ensure that new developments contribute to the cost of essential infrastructure.

The infrastructure contributions for SydneyWater were removed by IPART in 2010 as a result of a review that found that the charges were no longer necessary. The review found that the charges were contributing to an overall increase in the cost of housing, which was not beneficial for the community.

In addition, the review found that the charges were not transparent and were not being used effectively to fund infrastructure projects. As a result, IPART decided to remove the infrastructure contributions and instead focus on alternative funding mechanisms that were more transparent and effective.

However, with the increasing demand for essential infrastructure to support new developments, Sydney Water is now seeking to reintroduce the infrastructure contributions as a sustainable funding model for future infrastructure projects.

The reintroduction of infrastructure contributions by Sydney Water has been somewhat controversial. While some developers and industry groups have welcomed the initiative as a way to fund essential infrastructure, others have expressed concern about the potential impact on the cost of housing and the overall affordability of living in Sydney.

Some smaller developers have expressed concern that the contributions may affect their ability to undertake new developments.

Overall, the reintroduction of infrastructure contributions by Sydney Water is a complex issue that has generated a range of opinions and viewpoints from different stakeholders.

Timeline

Nov 2009 - IPART make the decision to remove water infrastructure contributions (contributions)

July 2010 - Removal of the contributions take effect

Sep 2020 - Sydney Water's initial submission for the reintroduction of infrastructure contributions for water services

Nov 2020 - NSW Productivity Commission’s Final Report released

Dec 2020 - IPART approved SydneyWater's proposal for the reintroduction of infrastructure contributions for water services

Mar 2021 - NSW Government accepted all 29 recommendations

Jul 2021 - The Environmental Planning and Assessment Amendment (Infrastructure Contributions) Bill was presented to Parliament and accepted

Oct 2022 - Proposed development servicing plans and proposed contributions on public exhibition

Apr 2023 - Proposed development servicing plans exhibited prior to lodging to the Independent Pricing and Regulatory Tribunal

Late 2023 - IPART will make a final decision on reintroducing contributions

2024-2025 - Proposed contributions to be capped at 25% of full charge

2025-2026 - Proposed contributions to be capped at 50% of full charge

1 Jul 2026 - Proposed contributions at full charge

Important Documents

What does this mean for you?

Land developers who are planning new developments in Sydney will need to factor in the cost of infrastructure contributions when preparing their budgets.

Generally speaking, existing developments that are already connected to the Sydney Water network will not be affected by the reintroduction of infrastructure contributions. However, if an existing development is undergoing significant expansion or modification, or if it is not yet connected to the Sydney Water network, it may be subject to the infrastructure contributions.

The specific requirements and circumstances for each development will be different, and developers should seek guidance from Sydney Water to ensure that they are fully compliant with all relevant regulations and requirements.

Sydney Water's reintroduction of infrastructure contributions will have a significant impact on land developers in Sydney. It is important that developers familiarize themselves with the proposed development servicing plans and relevant documents to ensure they are prepared for any changes that may occur.

If you would like to talk to a water expert on our team please contact Florian Jaehne on 0498 493 479 or at f.jaehne@theoriongroup.au

Everything You Need to Know About Sydney Water’s Infrastructure Contributions
More news
Next Post
Congrats 👏 you are all caught up! Check back soon for our next post.
Back to all posts
Previous Post
There is no previous post.
Back to all posts
Orion’s Advisory Group: Strengthening Leadership and Strategy

Orion’s Advisory Group: Strengthening Leadership and Strategy

26/11/24
All
Company News
Damage and Quantum Analysis in Construction

Damage and Quantum Analysis in Construction

26/11/24
All
Insights
Navigating Modern Slavery in Construction and Development Projects

Navigating Modern Slavery in Construction and Development Projects

15/11/24
All
Insights
Paving the Way for Environmentally Sustainable Design Practices

Paving the Way for Environmentally Sustainable Design Practices

13/11/24
All
Insights
Orion Group Celebrates the Successful Commissioning of Signalised Intersection Works at Mamre Road.

Orion Group Celebrates the Successful Commissioning of Signalised Intersection Works at Mamre Road.

6/11/24
All
Company News
Planning Insights: October 2024

Planning Insights: October 2024

31/10/24
All
Company News
Sydney Science Park STEM Grand Final Challenge 2024

Sydney Science Park STEM Grand Final Challenge 2024

21/10/24
All
Innovation
IMS Certification

IMS Certification

8/10/24
All
Company News
The Impact of an Experienced Superintendent on Project Outcomes

The Impact of an Experienced Superintendent on Project Outcomes

12/9/24
All
Insights
Sydney Science Park STEM School Challenge 2024

Sydney Science Park STEM School Challenge 2024

28/8/24
All
Innovation
Strategic Leadership: How Project Managers Ensure Development Project Success

Strategic Leadership: How Project Managers Ensure Development Project Success

20/8/24
All
Insights
Expanding Horizons: Orion's Latest Team Promotions

Expanding Horizons: Orion's Latest Team Promotions

16/7/24
All
Company News
International Women in Engineering Day

International Women in Engineering Day

24/6/24
All
Insights
Orion Group Moves to Wollongong’s CBD Where Big Things Are Happening

Orion Group Moves to Wollongong’s CBD Where Big Things Are Happening

5/4/24
All
Company News
Orion UDIA committee members 2024/2025

Orion UDIA committee members 2024/2025

4/3/24
All
Company News
Riverstone East Stage 3 Summary

Riverstone East Stage 3 Summary

21/2/24
All
Insights
Orion Welcomes Stephen Brain as Technical Director (Civil Infrastructure)

Orion Welcomes Stephen Brain as Technical Director (Civil Infrastructure)

18/12/23
All
Company News
Industry Update November 2023

Industry Update November 2023

28/11/23
All
Company News
Sydney Water WSC Licence now held by the Orion Group

Sydney Water WSC Licence now held by the Orion Group

30/8/23
Article by Florian Jaehne
All
Company News
Drone and Terrestrial Photogrammetry - Enhancing Land Development and Detail Road Surveys

Drone and Terrestrial Photogrammetry - Enhancing Land Development and Detail Road Surveys

1/8/23
Ryan Pearce
All
Innovation
Industry Update - Q4, 2023

Industry Update - Q4, 2023

5/7/23
Orion Group
All
Company News
The Water Team: Enhancing Infrastructure Development and Utility Coordination

The Water Team: Enhancing Infrastructure Development and Utility Coordination

30/5/23
Florian Jaehne
All
Insights
The Power of Lunch and Learns

The Power of Lunch and Learns

16/5/23
Christopher Scholes
All
Insights
Everything You Need to Know About Sydney Water’s Infrastructure Contributions

Everything You Need to Know About Sydney Water’s Infrastructure Contributions

2/5/23
All
Insights
Effective Stakeholder Management, Communication and Relationships

Effective Stakeholder Management, Communication and Relationships

26/4/23
Article by Natalie Galea
All
Insights
Industry Update - Q3, 2023

Industry Update - Q3, 2023

5/4/23
All
Company News
A Career in Surveying as a Woman - the good, the bad, and the ugly.

A Career in Surveying as a Woman - the good, the bad, and the ugly.

21/3/23
Article by Ailesh MacGillicuddy
All
Insights
20 Years of Navigating the Water Industry as a Water Engineer

20 Years of Navigating the Water Industry as a Water Engineer

6/2/23
Florian Jaehne
All
Insights
Orion Group Expands Their Horizons

Orion Group Expands Their Horizons

19/1/23
All
Company News
New Rezonings and Call for Proponent Nominated Rezonings

New Rezonings and Call for Proponent Nominated Rezonings

6/12/22
All
Insights
The Importance of a Well-Constructed Civil Engineering Design - Urban

The Importance of a Well-Constructed Civil Engineering Design - Urban

17/11/22
Article by Reece Stichter
All
Insights
5 Tips for Managing Construction Projects During Wet Weather

5 Tips for Managing Construction Projects During Wet Weather

24/10/22
Article by Wayne Azzopardi
All
Insights
Sydney Science Park STEM School Challenge 2022

Sydney Science Park STEM School Challenge 2022

28/9/22
All
Innovation
Introducing Orion Group's New Technical Director - Construction

Introducing Orion Group's New Technical Director - Construction

25/9/22
All
Company News
Orion Group's Remotely-Piloted Aircraft System Update

Orion Group's Remotely-Piloted Aircraft System Update

23/9/22
All
Company News
R U OK? DAY

R U OK? DAY

8/9/22
All
Company News
Jersey Day

Jersey Day

2/9/22
All
Company News
Beach2Beach Charity Fun Run

Beach2Beach Charity Fun Run

31/8/22
All
Company News
Constructing You Podcast with Philip Byrum

Constructing You Podcast with Philip Byrum

30/8/22
All
Company News
Industry Update August 2022

Industry Update August 2022

22/8/22
All
Company News
Introducing Orion Group's Recent Career Developments

Introducing Orion Group's Recent Career Developments

10/8/22
All
Company News
UDIA's 2022 Vice Chair for the Illawarra Committee

UDIA's 2022 Vice Chair for the Illawarra Committee

28/7/22
All
Company News
Orion Group Industrial Team Update

Orion Group Industrial Team Update

27/7/22
All
Company News
The World's Greatest Shave

The World's Greatest Shave

25/7/22
All
Company News
Annual Women in Property Luncheon

Annual Women in Property Luncheon

25/7/22
All
Company News
Industry Update May 2022

Industry Update May 2022

31/5/22
All
Company News
Introducing Orion Group's New UAV and Digital Lead

Introducing Orion Group's New UAV and Digital Lead

31/5/22
All
Company News
Australia's Biggest Morning Tea

Australia's Biggest Morning Tea

19/5/22
All
Company News
Introducing Orion Group's New Technical Director

Introducing Orion Group's New Technical Director

9/3/22
All
Company News
Industry Update March 2022

Industry Update March 2022

8/3/22
All
Company News
International Women's Day 2022

International Women's Day 2022

7/3/22
All
Company News
World Engineering Day

World Engineering Day

7/3/22
All
Company News
Introducing Orion Group's New Design Manager - Infrastructure & Industrial

Introducing Orion Group's New Design Manager - Infrastructure & Industrial

17/2/22
All
Company News
How Drone Technology Can Enhance Residential Sales

How Drone Technology Can Enhance Residential Sales

16/2/22
All
Innovation
Introducing Orion Group & KFW's New Registered Surveyor

Introducing Orion Group & KFW's New Registered Surveyor

1/2/22
All
Company News
Drone Eyed View

Drone Eyed View

27/1/22
All
Innovation
Introducing Orion Group's New Project Mangment Intern

Introducing Orion Group's New Project Mangment Intern

23/1/22
All
Company News
UDIA Committee Members 2022

UDIA Committee Members 2022

20/1/22
All
Company News
Opportunity

Opportunity

10/1/22
Philip Byrum
All
Company News
Orion Group Welcomes Martin Wells as Company Advisor

Orion Group Welcomes Martin Wells as Company Advisor

16/12/21
All
Company News
NSW Infrastructure Trianeeship Program

NSW Infrastructure Trianeeship Program

13/12/21
All
Company News
Orion Group and KFW Infrastructure Professionals

Orion Group and KFW Infrastructure Professionals

8/12/20
All
Company News
Your Interest + Our People = Success

Your Interest + Our People = Success

22/11/20
Joshua Pineda
All
Company News
The Trinity F90

The Trinity F90

20/10/20
All
Innovation
Next Generation Orion

Next Generation Orion

10/10/20
Dominic Lynch
All
Company News
Sydney Science Park CSIRO Urban Living Lab

Sydney Science Park CSIRO Urban Living Lab

16/9/20
All
Innovation
Blue Sky Thinking

Blue Sky Thinking

9/9/20
Dominic Lynch
All
Insights
Why Developers Need a Post-2020 Profit Strategy for NSW Growth Centre Developments

Why Developers Need a Post-2020 Profit Strategy for NSW Growth Centre Developments

15/7/20
Brad Harkins
All
Insights
Rethinking Rain - Our 'Real Time' Guidelines

Rethinking Rain - Our 'Real Time' Guidelines

28/8/19
Christopher Scholes
All
Insights
Orion has Expanded!

Orion has Expanded!

20/5/19
All
Company News
Want to Solve Problems Faster? Think Positive!

Want to Solve Problems Faster? Think Positive!

4/4/19
James Green
All
Insights
Orion Are Now Operating from Wollongong

Orion Are Now Operating from Wollongong

13/7/18
All
Company News

Sign up for
industry
news and updates