New DPI policy

Property developers in Western Australia may soon be required to pay local governments an amount of money towards community infrastructure determined by a set calculation, under a policy to be introduced by the state government.

The draft policy, aimed at making the existing system more transparent, includes a formula to calculate each developer's share of the total cost.

Under the current system, developers make both financial and in-kind contributions towards basic infrastructure, with extra services negotiated between the parties.

The new process will require each local government to outline a 10-year infrastructure plan, including a capital works program.

Contributions from individual developers will then be calculated, based on the catchment area of the infrastructure.

Funds are to be managed in a separate account and spent only on the agreed projects.

The policy has been developed by a joint steering committee, made up of the WA Local Government Association, the Urban Development Institute of Australia (WA), and the state government.

UDIA WA chief executive Debra Goostrey said it would formalise the process already in place for infrastructure contributions, and help maintain housing affordability.

WALGA president Bill Mitchell said the policy would create a fairer system, with both large and small developers required to make payments.

The policy will be released this week for public comment, before being assessed by the WA Planning Commission.