Hunter Region Special Infrastructure Contribution aims to get new homes and industrial buildings on the market sooner

The Hunter Region Special Infrastructure Contribution (SIC) is designed to get new homes and industrial buildings on the market sooner by eliminating the need for a developer or builder to negotiate a voluntary planning agreement, where they agree to provide or fund public infrastructure – which can add years to the time it takes to get a project started.

It is the first time the infrastructure funding model has been used in the state. 

Unlike the former Hunter Infrastructure Fund, the SIC will provide funding for projects at a local rather than regional level. 

The Hunter Business Chamber  and Urban Development Institute of Australia welcomed the draft SIC, which could have major implications for urban development projects such as Huntlee near Branxton and Kings Hill near Raymond Terrace that require  significant upfront investments in infrastructure such as roads and sewer. 

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It is estimated the SIC, presently on public exhibition,  could provide up to $468.8 million over the next 20 years towards the total cost of infrastructure required to support expected population growth. 

The following projects have been earmarked to  benefit:

Hunter Business Chamber chief executive Bob Hawes said the SIC would help facilitate development across the region. 

“It will provide more certainty for developers and mean projects can get moving quicker,” he said. 

“It will be particularly valuable for developments like Kings Hill that require significant investments in roads and sewage works.”  

Urban Development Institute of Australia chief executive Steve Mann said  providing certainty was critical to enabling continued growth in the Hunter.

“The industry is concerned about the impact of a slow-down of supply on the economy in the Hunter and longer-term house prices. We will be looking at the detail of the draft SIC to see its impact on supply and prices,” he said.

“We also welcome the transition period from the old to the new charges, as well as the certainty the SIC will bring compared to negotiating individual Voluntary Planning Agreements.” 

Newcastle state Labor MP Tim Crakanthorp said the government had a track record of mismanagement and the wrong priorities.

“Look at how the Government has handled developer contributions in Sydney – now they want to roll out the same scheme in the Hunter. Schools, roads, and parks have missed out on a quarter of billion dollars in development contributions,” he said.

The Department of Planning and Environment’s Acting Deputy Secretary Planning and Design, Brett Whitworth, invited the community to have their say on the draft Hunter Region Special Infrastructure Contribution (draft Hunter SIC).

“The draft Hunter SIC is a key step towards supporting the delivery of vital infrastructure, including schools, roads, and transport, health and emergency services in the booming Hunter Region over the next 20 years,” Mr Whitworth said.

The exhibition period closes on February 25.