The Property Council of Australia has been left seething after the NSW state government confirmed its plans to abandon a number of proposed reforms to local infrastructure levies.
According to the Council, the government recently rejected its original plan to cap development levies at $20,000, a promise that was made prior to the federal election.
"The government has walked away from landmark reforms that had the potential to deliver substantial savings to homebuyers on the cost of new housing," NSW executive director Glenn Byres said.
"We have a housing supply shortfall in NSW estimated to be as high as 60,000 in Sydney alone and excessive infrastructure levies have stifled production.
"The Government had intended to introduce a strict cap and ensure a rigorous, fair and transparent process was in place for financing infrastructure."
Mr Byres said the planned development levy cap was a sound initiative that recognised the fact that homebuyers ultimately bear the cost of infrastructure charges.
"It is no way to build investor confidence at a time of fragile sentiment and low housing production," he said.
The state government reforms were announced as a part of the 2010 federal budget in June.