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Final Report PlanFirst Review Taskforce - Department of Planning

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The Hon Craig Knowles MP<br />

Minister for Infrastructure and <strong>Planning</strong><br />

Minister for Natural Resources<br />

Level 33<br />

Governor Macquarie Tower<br />

1 Farrer Place<br />

SYDNEY NSW 2000<br />

Dear Minister<br />

<strong>PlanFirst</strong> <strong>Review</strong> <strong>Taskforce</strong><br />

28 July 2003<br />

As you are aware from 1 November 2002, NSW consent authorities began collecting an additional<br />

'<strong>PlanFirst</strong>' fee on all development applications valued at over $50,000.<br />

Revenue from the fee was to be used to part fund the development <strong>of</strong> regional strategies and to<br />

provide funding assistance to local councils to improve strategic planning and delivery <strong>of</strong> new local<br />

plans. Allocation <strong>of</strong> a certain proportion <strong>of</strong> the fee revenue to local government was seen as critical<br />

in implementing the 'new' system at the local level. The intention was that the State government<br />

would also provide funding, for the implementation <strong>of</strong> the reforms, equivalent to that collected<br />

through the fee.<br />

Term <strong>of</strong> Reference No. 3 <strong>of</strong> the <strong>PlanFirst</strong> <strong>Taskforce</strong> is to:<br />

'Advise on how the strategic planning fee currently being collected on certain development<br />

applications should be used to progress reform <strong>of</strong> the planning system'.<br />

At its last meeting, the <strong>Taskforce</strong> examined the current state <strong>of</strong> play in relation to collection <strong>of</strong> the<br />

fee and considered possible options for the ongoing collection and use <strong>of</strong> the fee.<br />

The <strong>Taskforce</strong> was <strong>of</strong> the view that the EP&A Act provides for State and regional planning as a<br />

legitimate and core function <strong>of</strong> the State Government and that a stand alone, additional fee on<br />

development is not necessarily the most equitable way to fund this fundamental and central role <strong>of</strong><br />

government. Accordingly, funding for these core functions is more appropriately sourced from<br />

Treasury during the annual budget process.<br />

However, the <strong>Taskforce</strong> considered that the fee should be retained in the short term and at least<br />

until the end <strong>of</strong> the 2003/04 financial year. The abolition or retention <strong>of</strong> the fee in a different form<br />

PRINT VERSION<br />

1 September 2003<br />

42

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