The recently announced Hunter Region Special Infrastructure Contribution is concerning news for local homebuilders, according to the Housing Industry Association (HIA).
The HIA says the new home building industry is one of the most heavily taxed sectors in the Australian economy, and added costs implied in the draft Hunter Region SIC will further reduce housing affordability for Hunter families.
Association Executive Director Craig Jennion believes these extra costs will impact homeowners greatly, as levies paid by developers often go straight onto the price of a new home.
The NSW Government has recognised vital infrastructure is required for future development of the Hunter, but the HIA warns the government needs to consider the cost of the proposed new funding model.
HIA Executive Director Craig Jennion says charges relating to the development of an asset that will be used by the whole community should be met by the broader community and not passed onto home buyers.
"Any proposal that brings on new infrastructure is really good for the community as well as the industry to allow more housing to occur," said Mr Jennion.
"Unfortunately, the NSW government' new Hunter Region Special Infrastructure Contribution plan is putting more costs onto homeowners."
The Hunter Business Chamber welcomed the draft SIC, but CEO Bob Hawes says there is a lot of work to do to assess the proposed model and is encouraging residents to view the plan and offer feedback.
"It will not only impact the potential feasibility of development but ultimately the price at which developers are able to offer blocks of land or particular industrial and residential developments for sale," said Mr Hawes.
"And that has a very broad impact on the community, given the amount of new subdivision that's ahead of this region in times to come."
The draft Hunter Region SIC can be viewed here and submissions can be made online until February 25th.
