On 20 February 2026, Property Council submitted to the Department of Internal Affairs on the ‘Supporting Growth through a Development Levies System’ consultation document.
Why this matters to our members
The Government’s proposal to replace development contributions with a new development levy system represents a major shift in how growth-related infrastructure is funded. From a property sector perspective, the current development contributions regime has become increasingly opaque, difficult to scrutinise, and subject to sudden and unpredictable price changes, undermining cost certainty, development feasibility, and housing affordability. Reform is both necessary and timely, and Property Council welcomes the opportunity to engage on the proposed framework.
Our view
Property Council supports the intent to reform the development contributions system and sees the development levy framework as an opportunity to improve transparency, accountability, and discipline in infrastructure funding. However, as currently designed, aspects of the levy methodology, aggregation of costs, and proposed implementation settings risk perpetuating the uncertainty and cost inflation experienced under the existing regime. Our submission focuses on strengthening safeguards, improving price signaling, and uplifting planning quality to ensure the new system is workable, credible, and genuinely supports growth. Due to our concerns, we are asking the Government to consider a second round of targeted consultation to be completed before the legislation is introduced to Parliament.