Developer group hits at charges

NSW councils have come under fire from a developer lobby group for putting the economy at risk through planning red tape and excessive charges on new homes.

The Urban Taskforce group which represents NSW developers said new economic surveys by the Organisation for Economic Co-operation and Development (OECD) highlighted a “serious medium-term risk” to the economy as a result of restrictive planning laws and inefficient infrastructure charges on new homes.

Urban Taskforce chief executive Aaron Gadiel said the OECD was clearly “giving us an early warning that Australia’s inadequate housing supply needs to be fixed”.

“Reform is crucial if we want to see non-inflationary growth and a sensible allocation of resources.”

The OECD report says “a rising share of the population is being priced out of the (housing) market” and “measures should be adopted to stimulate supply and more efficient use of the existing housing stock”.

“The supply constraints need to be lifted by streamlining the planning and zoning regulations,” the report says.

Mr Gadiel said the report made it clear reforms are needed.

“This report is a real wake-up call to complacent state and local governments,” Mr Gadiel said.

“It’s clear that the high costs of sweeping prohibitions and restrictions, together with inefficient infrastructure charges, have crippled Australia’s housing supply.”

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