Draft Penrith Aerotropolis Development Contributions Plan 2023

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Council at its Ordinary Meeting of 22 July 2024 adopted the Penrith Aerotropolis Development Contributions Plan (Penrith Aerotropolis CP) with a s7.12 levy rate of 5.6%. Following Councils adoption, the Penrith Aerotropolis CP came into effect on 14 August 2024. A copy of the plan can be found in the Document Library on the right-hand side of this page and also on Council’s Current Development Contributions Plans webpage.

The Penrith Aerotropolis CP applies to development within the Agribusiness Precinct, Badgerys Creek Precinct and Northern Gateway Precinct situated within Penrith LGA as identified in Figure 1 on Page 4 of the plan, with a proposed cost of over $200,000.

The community and industry members were invited to have their say on the future development of the Aerotropolis precinct, with the draft Penrith Aerotropolis Development Contributions Plan released for re-exhibition between 15 June to 13 July 2023. At its Ordinary Meeting of 23 October 2023, Council resolved to endorse the Draft Penrith Aerotropolis CP to be sent to the Minister for Planning to allow Council to apply the 5.6% levy rate. Following, section 209 of the Environmental Planning and Assessment Regulation 2021 (EP&A Regulation) was amended on 12 July 2024 allowing Council to apply the 5.6% s7.12 levy rate to the Penrith Aerotropolis CP, an increase from the maximum levy rate of 1% under section 209 of the EP&A Regulation. A copy of the EP&A Regulation amendment can be found in the Document Library on the right-hand side of this page.

Background

The Penrith Aerotropolis CP has been prepared to enable developers of land in the Penrith Aerotropolis precinct to make a monetary contribution (called a ‘section 7.12 contribution’ or ‘s7.12 levy’) to fund local infrastructure needed to align with growth, fulfil the precinct’s potential and create a sustainable, well-connected and liveable city.

The Plan seeks to deliver approximately $827 million by apportioning a contribution rate of 5.6% for development over $200,000 within the Aerotropolis precinct in Penrith’s Local Government Area.

The contributions will fund the delivery of essential local infrastructure such as local roads, bridges, active transport connections, open spaces, community facilities and other embellishments identified in the Aerotropolis planning package.

The Penrith Aerotropolis Development Contributions Plan will:

ensure services, facilities and infrastructure are delivered as development occurs, in order to meet the needs of our growing City

implement streamlined and transparent development contributions processes for development in the Aerotropolis, and

fund engineering infrastructure, community facilities, parks, sports and recreation facilities.

The Plan was previously released as a joint plan between Penrith and Liverpool City Councils in 2020-21 and a key change is that both councils now have their own Plans to enable greater autonomy and simplified administration of the Plan.

With the total cost of local infrastructure for both councils estimated at $2.8 billion, a collaborative approach was taken to develop individual plans which better reflect the unique requirements and costs of infrastructure for each Local Government Area.

Have your say

Feedback was welcomed between Thursday 15 June 2023 - 13 July 2023. The exhibition period has now closed.

Next steps

The results of the public exhibition were reported to the elected Council for consideration on 23 October 2023. All submitters were notified of Council's decision to endorse the Draft Penrith Aerotropolis CP.

At its Ordinary Meeting on Monday 29 May 2023, Council endorsed the draft Aerotropolis Development Contributions Plan to provide much-needed local infrastructure within the emerging Aerotropolis precinct. 

The plan outlines how Council will collect contributions from developers to fund the significant infrastructure needed to deliver on the vision of the precinct as a logistics hub, centre for innovation and to support a wide range of local jobs.

Prepared in collaboration with Liverpool City Council, it applies to land within the initial precincts of the Western Sydney Aerotropolis which is expected to accommodate more than 100,000 workers and 30,000 residents.

The contributions in this plan are based on the costs of land and works needed to provide local infrastructure only. Local infrastructure includes local and collector roads, parks and community facilities. Councils and land developers are responsible for providing local infrastructure.

While the NSW Government has zoned the land, Council is responsible for reviewing and accepting development applications. We need a sustainable contributions plan that will fund the infrastructure to support these developments.

The Aerotropolis is a regionally significant precinct that will play an important role in NSW and Federal government plans for the Western Parkland City and in the state’s jobs-led recovery from COVID-19. As such it is appropriate that industry fund the essential infrastructure and that all levels of government look at the funding model that will transform this greenfield site.