Issues Paper - Review of IPART discount rate for local government infrastructure contributions - September 2025

What did we receive from stakeholders?

Our Issues Paper sought input to this review, and submissions were due on 31 October 2025. We received 8 submissions which are now published on our website. We also held a public workshop on 14 October 2025, and the presentation and a recording of the workshop are available here.

We will consider all stakeholder feedback before publishing a Draft Report with our draft decisions in early 2026. Stakeholders who would like to be notified when relevant material is released can subscribe to receive updates from IPART.

Why are we reviewing the discount rate methodology?

We are reviewing the methodology to ensure that our local government discount rate is suitable for councils using an NPV approach for contributions plans. Using an NPV approach should help councils recover sufficient revenue from local infrastructure contributions to recover costs of serving the remaining development in present value terms.

Why is the discount rate important?

For contributions set using an NPV approach, the discount rate for local government contributions plans influences the contributions that developers must pay to councils to fund the local infrastructure that their developments require.