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What Is the NSW Housing and Productivity Contribution? A Guide for Developers and Property Owners
If you’re planning a new subdivision, dual occupancy, apartment development or commercial project in New South Wales, you’ve probably come across the Housing and Productivity Contribution (HPC). The Housing and Productivity Contribution is now an important part of the development approval process in many parts of NSW.
In this guide, we’ll explain what the Housing and Productivity Contribution is, who needs to pay it, how it’s calculated, and what it means for your development.
What Is the Housing and Productivity Contribution?
The Housing and Productivity Contribution is a NSW Government infrastructure contribution that applies to many new residential, commercial and industrial developments. The money collected helps fund the infrastructure needed to support growing communities, including:
- Schools
- Hospitals
- Major roads
- Public transport
- Regional open space
- Other essential state infrastructure
Rather than existing communities carrying the cost of new growth, the Housing and Productivity Contribution ensures that new development contributes towards the infrastructure it will rely on.
Where Does the Housing and Productivity Contribution Apply?
The Housing and Productivity Contribution currently applies across several high growth regions of New South Wales, including:
- Greater Sydney
- Illawarra Shoalhaven
- Lower Hunter
- Greater Newcastle
- Central Coast
The contribution applies to eligible development applications, complying development certificates and certain State Significant Development projects lodged through the NSW Planning Portal.
The Housing and Productivity Contribution generally applies to:
Residential subdivisions
New residential lots created through subdivision.
Medium and high density residential development
Developments that create additional dwellings such as:
- Apartments
- Townhouses
- Villas
- Dual occupancies where applicable
Commercial development
New commercial floor space may attract the contribution based on gross floor area.
Industrial development
Industrial developments are also assessed using gross floor area calculations.
How Is the Housing and Productivity Contribution Calculated?
The contribution depends on several factors, including:
- The location of the development
- The development type
- The number of lots or dwellings created
- The amount of commercial or industrial floor space
Contribution rates are indexed every quarter using the NSW Producer Price Index for Road and Bridge Construction, meaning they change over time. Developers should always check the latest published rates before lodging an application.
When Does the Housing and Productivity Contribution Need to Be Paid?
The payment timing depends on the type of development and approval pathway.
For many developments, the contribution is required before a Construction Certificate can be issued. Payment is made through the NSW Planning Portal as part of the approval process.
If you’re unsure when your contribution becomes payable, your certifier or planning consultant can help determine the correct timing for your project.
Does Every Development Pay the Housing and Productivity Contribution?
No.
The Housing and Productivity Contribution only applies to developments within designated contribution areas and development types identified by the NSW Government.
Some developments may also qualify for exemptions, reductions or amendment certificates where previous infrastructure contributions have already been made. Specific eligibility criteria apply.
What Areas Does the Housing and Productivity Contribution Apply To?
The Housing and Productivity Contribution currently applies within selected regions, including:
- Greater Sydney
- Illawarra Shoalhaven
- Central Coast
- Lower Hunter
Some transport project areas may also attract additional contribution requirements where identified by the Ministerial Order.
How Does the Housing and Productivity Contribution Affect Subdivisions?
If you’re subdividing land, the Housing and Productivity Contribution may become part of your approval process.
Depending on your project, you may also need:
- Development Approval
- Complying Development Certificate
- Construction Certificate
- Subdivision Works Certificate
- Subdivision Certificate
The contribution is separate from your certification requirements but forms part of the overall development approval pathway.
Working with an experienced certifier early can help you understand which approvals apply and identify any contribution obligations before construction begins.
How Statewide Certifiers Can Help
At Statewide Certifiers, we help developers, builders and landowners navigate the NSW planning system every day.
While the Housing and Productivity Contribution is administered by the NSW Government, we can assist by:
- Explaining how the contribution affects your project
- Helping determine which approvals you require
- Issuing Construction Certificates
- Issuing Subdivision Works Certificates
- Managing subdivision certification
- Coordinating inspections throughout construction
- Helping your project move through the certification process efficiently
Getting advice early can save significant time later in the project and reduce the risk of unexpected delays.
Frequently Asked Questions
The Housing and Productivity Contribution is a NSW Government infrastructure contribution charged on certain developments to help fund roads, schools, public transport and other regional infrastructure needed to support population growth.
No. It only applies to eligible developments within designated contribution areas and development types specified under the Ministerial Planning Order.
No. The Housing and Productivity Contribution is a state infrastructure contribution. Local councils may also require separate local infrastructure contributions depending on your development.
Payments are made through the NSW Planning Portal using your Planning Portal account once the contribution has been determined.
A private certifier can explain how the contribution fits into your certification process, identify when it becomes payable and ensure your approvals are progressing correctly alongside your development.
See Our Services
Subdivision Certification
Registered Subdivision (B1) Certifier
Statewide Certifiers offers services for subdivision works, including inspections and compliance certifications. Our experts ensure that subdivision works meet regulatory standards and issue completion certificates. Our services are available in nominated local government areas, providing reliable support for developers and builders.
Subdivision Works Certificates
Registered Subdivision (B1) Certifier
We provide expedient assessment and issuance of Subdivision Works Certificates (formerly Construction Certificates). As your trusted certifier, we always ensure compliance with subdivision development works requirements, offering efficient certification services to help developers move forward with their projects without delays.
Strata & Torrens Subdivision Certificates
Registered Subdivision (B1), (D1) Certifier
Statewide Certifiers specialise in Strata & Torrens Subdivision Certification, including Strata Subdivision, Community Property Conversion, and Strata Plan Subdivision under the Strata Development Act. We assess and issue Torrens Subdivision Certificates in designated areas, facilitating smooth project progression and adherence to local regulations.
Complying Development Certificates
Registered Subdivision (B1), (D1) Certifier
We issue Complying Development Certificates (CDC) for Strata and Torrens subdivisions under SEPP codes. Our experts assist with multi-dwelling project approvals, ensuring council compliance. We also provide certification for low-rise housing, including subdivision works, inspections, and plan certifications, ensuring compliance for developers and builders.
Contact Details
Address
Unit 401/1 Black Wattle Cct, Casuarina NSW 2487
Phone: 0418 621 389
Email: msmith@cehconsulting.com.au