The proposed Housing and Productivity Contribution Scheme Works-in-Kind Guideline outlines how developers can meet their contribution obligations by dedicating land or carrying out infrastructure works rather than making cash payments.
The Housing and Productivity Contributions Scheme (HPC Scheme) currently applies to residential, commercial and industrial development in the Central Coast, Greater Sydney, Illawarra-Shoalhaven and Lower Hunter regions.
Under the draft guideline, Works-in-Kind proposals will be competitively assessed using a structured process based on strategic alignment, evidence, transparency, efficiency, and fairness.
Only regional and state infrastructure projects listed in the government’s Infrastructure Opportunities Plans will be eligible for Works-in-Kind arrangements, though developers can submit expressions of interest for additional projects.
The NSW Government will establish a non-cash budget from the Housing and Productivity Fund to support these arrangements, which may limit the number of proposals selected each financial year.
This approach replaces the previous special infrastructure contributions scheme and aims to fund critical state and regional infrastructure while potentially expediting development timelines.
Housing Industry Association (HIA) NSW Executive Director Brad Armitage welcomed the initiative, saying it addresses long-standing industry concerns.
“HIA has been calling for all levels of government to find ways to accelerate the delivery of essential infrastructure needed to unlock pathways for the construction of new homes across Greater Sydney and regional areas,” Mr Armitage said.
He said that the arrangement would allow developers to dedicate land or deliver infrastructure projects like state roads or schools instead of making monetary contributions.
Mr Armitage suggested expanding the concept further, and said that “it would be beneficial if this type of works-in-kind approach could be more widely applied to local infrastructure contributions as well.”
The draft guideline is open for public submissions until July 17, 2025, with the government expected to provide additional details once the consultation period concludes.
Industry stakeholders are encouraged to review the proposal and provide feedback during the exhibition period to help shape the final implementation of the scheme.
“As always, HIA stands ready to work with all levels of government to find ways to speed up the delivery of essential infrastructure, so that the housing industry can move forward and build more homes,” Mr Armitage said.
