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Creation Date: Fri, 28 Jan 2011 GMT Sydney councils stockpile $560m unspent fundsLocal councils across Sydney are sitting on almost $560 million in unspent infrastructure levies, with some councils earning more in interest charges than what they spent on infrastructure. The figures are revealed in the Property Council of Australia's latest audit of section 94 levies, based on local government financial statements for 2009-10. "There is no good excuse for stockpiling almost $560 million in infrastructure levies," NSW Executive Director Glenn Byres said today. "Infrastructure levies are built into the cost of new houses and collected on the promise they will be spent on essential infrastructure and community facilities. Mr Byres said the figures show a 12 percent increase in unspent levies over the past 12 months - up from $499 million in 2008-09. More than $193 million in section 94 contributions were collected during 2009-10 - but only $168 million was spent. Seven councils raised more in interest on unspent infrastructure levies in the past year than they spent - collectively earning $14.7 million but spending $8.9 million. "Some councils do the right thing but there is a clear case for greater accountability in the collection and use of infrastructure levies," Mr Byres said. "Some of the worst offenders have sought exemptions from the cap on section 94 contributions and oppose development on the grounds of strained infrastructure. "They would be better served by a regime that trims the amount councils can collect and then ensures it is spent effectively. Mr Byres said the Property Council of Australia has promoted solutions including: · Alternative financing methods like Growth Area Bonds - where governments fund infrastructure with a bond then repay it with the growth in property taxes generated by the investment · ‘Use it or lose it' provisions when unspent money above set benchmarks is reallocated by the Local Government Grants Commission · Stricter enforcement of caps on infrastructure levies and a greater role for IPART in scrutinising s94 plans. To view the Property Council's media release, please click here. Glenn Byres, http://www.propertyoz.com.au/, January 20 2011
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