Toowoomba Regional Council (TRC) is considering the adoption of new planning scheme policies that contain infrastructure contributions paid by developers rather than ratepayers.

Mayor Peter Taylor said the new policies, required under Queensland planning legislation, contain infrastructure costs lower than expected and do not burden general ratepayers.

"This is a win all round. Ratepayers won't be paying for new development infrastructure costs and developers will pay less than expected with clear and concise guidelines of what is required under these new planning scheme policies," Cr Taylor said.

The proposed planning scheme policies involve charges for up-front infrastructure costs incurred by council for headworks such as parks, sewerage, transport and water supply. They are being submitted to council after input from a wide range of stakeholders including development industry representatives, State Government and council officers, consultants and the TRC Executive Management Team.

Planning and Development Services portfolio leader Cr Peter Marks said the new planning scheme policies for the Toowoomba region replace the old and often outdated schemes.

"Planning scheme policies currently exist in some form across some infrastructure networks in the region and in many cases, over very limited areas of the old jurisdictions.

“The new policies have been put together after a detailed and extensive consultation and study process. State planning legislation now requires them to be adopted by council before October 30," Cr Marks said.
Under Queensland's planning legislation, all councils will eventually be required to have a Priority Infrastructure Plan as part of their planning schemes. This plan will be part of the new Toowoomba Regional Council Planning Scheme due for release in December 2011. However, legislation required the introduction of a transitory regime covering infrastructure costs.

Cr Marks said taken as a percentage of the cost of land, the new infrastructure charges are at about the same level they were six years ago.

"As the price of land has increased since 2003, infrastructure charges haven't changed. This means that as a percentage of the cost of the land, the infrastructure charges have become less each year."

Mayor Taylor said equity and fairness were the drivers in the creation of the new charges. He said any potential impact they might have socially, economically or on housing affordability was carefully assessed.

"What the consultants found was very much in line with the results of Productivity Commission inquiries," Mayor Taylor said.

"Firstly, the user pays system is more equitable and doesn't burden ratepayers for costs incurred by investors. It also doesn't impact socially because those less able to afford new home prices don't have to pay for the establishment of them through rates.

"Secondly, the housing affordability problem can't be blamed on infrastructure costs. In fact there is evidence in the study to say this system will help keep prices under control long term. And thirdly, any economic impact is negligible. There is clear evidence that developer margins will not be impacted and development activity can be maintained," Cr Taylor said.