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Vol 11. No.5

Economic Overview

	Current	+/-	Movement
$AUS/$US	92.08	+0.67
Cash Rate	3.75	Steady
90 Day Bill	4.13	-0.02
10 Year Bond	5.640	-0.015
ASX 200	4899.4	-22.0

NSW Property

Infrastructure Levy Update (AFR Pg.44)

• According to an audit conducted by the Property Council of Australia, the NSW government has failed to implement all the recommendations listed in a December 2008 review into infrastructure levies, adding around $40,000 to the cost of a new home.
• Several recommendations were made in the December 2008 review.
• Section 94 developer levies were to be capped at $20,000/lot, with ministerial approval needed to exceed the cap. The PCA indicated that 34 of 152 council in NSW were still levying above the cap.
• The government had indicated it would increase its contribution to the cost associated with the provision of infrastructure from 25% to 50% until June 2011, however sources suggest that no information has since been released on how much money was saved or spent as a result.
• Details relating to works in kind (tradable infrastructure) were to be released in early 2009 but to date no information has been provided.
• Additionally, reforms to Part 5B of the Environmental Planning and Assessment Act were to be delivered in the first quarter 2009 and are still in draft form.