Here's an article from smh.com.au
Levy cuts 'may lead to cheaper housing'
October 12, 2007 - 6:44PM
New homes in growth centres on Sydney's western fringes could cost $25,000 less after the NSW government on Friday announced it will cut developers' council and state levies.
Premier Morris Iemma said the reduction in property development and housing contribution levies would help young families into new homes.
Under the plan, the building industry will no longer contribute to the construction of parks, libraries, schools, hospitals and police stations needed in new suburbs.
The cuts will initially apply to developers in Sydney's western growth areas, who will see their costs reduced by about $25,000 per lot.
It will eventually be applied to new land releases statewide.
"It's a win for young families and a win for the housing industry, giving it a kick along," Mr Iemma told reporters in the growth area of Rouse Hill, in Sydney's north-west.
A state government inquiry into Sydney's local governments holding around $750 million in unspent infrastructure levies is currently underway.
The money traditionally raised from developers' levies will be replaced by a state government trust expected to cost about $2 billion over the next 25 years.
NSW Treasurer Mr Michael Costa said this would ensure the money was spent on the necessary community projects.
"Latest figures show that local governments in the greater Sydney metropolitan area hold around $750 million in unspent infrastructure (money)," Mr Costa said.
But the move, which the premier said was designed to improve housing affordability in the state, prompted mixed reaction.
The NSW opposition claimed it was a "revenue raiser" while the Local Government Association said the state government couldn't guarantee developers would pass on the savings.
Mr O'Farrell and opposition planning spokesman Brad Hazzard said the Iemma government's new levy regime would actually increase housing costs across Sydney and the Central Coast.
"Infrastructure levies are about to be imposed for the first time on all areas or 'brownfield' sites, (they are) existing suburbs that already have the infrastructure existing for many years.
"It's a rip off dressed as a tax cut," Mr O'Farrell told reporters.
Shires Association president Bruce Miller said the decision did not guarantee more land availability.
"Unless the government guarantees it will pick up the funding shortfall, and puts in place strict guidelines requiring developers to pass on savings, we'll be faced with a situation where communities wait 20 or 30 years for basic infrastructure," he said.
The Sydney Chamber of Commerce and the Housing Industry Association both welcomed the levy reductions.
