INFRASTRUCTURE DEVELOPMENT FUND

PHASE 2 PLANNING REFORM INITIATIVES

WHAT YOU NEED TO KNOW...

UDIA WA RESPONSE FROM THE CEO

UDIA WA advocates for public policy initiatives that support a development ready residential supply pipeline across the housing continuum.

We continue to reinforce and drive the need for a planning-led approach to the funding, coordination and prioritisation of infrastructure delivery and approvals across government.

It is with this in mind that we welcome today’s announcements by the Premier and Ministers for Planning and Housing as outlined below.

Today’s announcement directly responds to UDIA WA’s advocacy on the need for a permanent pathway for the coordination of agency referrals, albeit limited to proposals of State significance and introduces the 120-day timeframe for determination which was lacking from the SDAU.

A potential game-changer for many of our members is making DAPs a completely opt-in process for any development over $2 million, with standard exclusions such as single homes still applying. A brave move by the McGowan Government and very much welcomed by our industry. Critical to the success of this initiative is appointing the right permanent Presiding and Deputy Presiding members on each panel.

The announcement of the Infrastructure Development Fund acknowledges a fundamental constraint in the delivery of housing supply from a funding perspective. To really move the dial in this space, we must address the lack of strategic infrastructure coordination outside the remit of IWA. I am encouraged by the messaging from government in this space and am hopeful we will see further changes on this front confirmed soon.

In terms of tipping proposed apartment and infill developments into the ‘feasible’ category, the $10,000 rebate whilst helpful does not address the challenge of lack of certainty around market confidence. UDIA WA continues to advocate for the extension of the off-the-plan duty rebate scheme for apartments in terms of timeframe and applicability from just off-the-plan to under construction.

All options need to be on the table to ensure we have sufficient housing supply across infill and greenfield sites and minimise the looming pressure on housing affordability. I am pleased that the McGowan Government is responsive to this and that UDIA WA has a seat at that table.

Tanya Steinbeck

UDIA WA CEO 

THE DETAIL

PERMANENT PATHWAY FOR SIGNIFICANT DEVELOPMENT PROPOSALS

The Planning and Development Act 2005 will be amended to change the composition and operation of the Western Australian Planning Commission (WAPC) and establish a permanent pathway for assessment of development proposals of State and regional significance.

The Act will be amended to refine provisions established for the temporary Part 17 process and create a new, permanent assessment pathway that:

• retains the WAPC - or a committee of the Commission - as the decision-maker;
• introduces a 120-day timeframe for assessment and determination of significant development proposals;
• refines the eligibility criteria for what is considered to be of State and regional significance; and
• embeds the successful State referral coordination process.

The Act will also be amended to redefine the focus of the Commission on strategic planning, in particular integrated land use planning outcomes that will complement the work of Infrastructure WA.

It is proposed that the Commission will be reduced to 10 members, supported by a refined Committee structure and improved transparency and efficiency.

DEVELOPMENT ASSESSMENT PANELS – CHANGES

Changes to existing Regulations for Western Australia's Development Assessment Panel (DAP) system include:

• reduce the number of panels to three - one each for Perth's inner and outer metropolitan areas and the third panel to service all regional areas;
• permanently appoint highly experienced technical experts to serve as Presiding and Deputy Presiding members on each panel, with no change to the current local Council representation proposed;
• allow all multiple dwelling developments to be determined by a DAP; and
• making DAPs a completely opt-in process for any development over $2 million, with standard exclusions such as single homes still applying.

INFRASTRUCTURE DEVELOPMENT FUND

The $80 million Infrastructure Development Fund has been allocated equally between metropolitan and regional projects ($40 million each).

Applications will open in March 2023 for a period of 18 months.

The Infrastructure Development Fund consists of three funding programs:

Targeted Apartment Rebate

For new apartment developments, a targeted rebate of up to $10,000 per multiple dwelling will be available to assist with water, wastewater and electricity infrastructure connection and contribution costs incurred with the Water Corporation or Western Power. Funds will be paid directly to the infrastructure provider.

The rebate will be restricted to apartment (multiple dwelling) projects within the Perth metro-central sub-region, METRONET Station Precincts and Housing Diversity Pipeline sites.

Developments receiving funding under the program will be required to commence within two years of approval and complete construction within four years. An additional 12-month discretionary extension is available to account for unforeseen construction delays.

Unlocking infill precincts

The second stream of the Infrastructure Development Fund has been designed as an infrastructure investment program to address constraints in the water, wastewater and electricity network at a precinct scale, to facilitate medium to high density development within the Perth metro-central sub-region, within METRONET station precincts and Housing Diversity Pipeline sites.

Unlocking regional worker accommodation opportunities 

The third funding stream has been designed as an infrastructure investment program to address infrastructure constraints in the water, wastewater and electricity network at a precinct or strategic site scale impacting the delivery of regional worker accommodation.

As further detail is made available on the above, UDIA WA will keep members informed.

We welcome our members’ views and insights to ensure we continue to advocate for the initiatives that make a meaningful positive impact for your organisations and the broader industry.

Email our CEO Tanya Steinbeck or our Executive Director of Strategy & Policy Sarah Macaulay or call on 9215 3400.