Community Infrastructure Incentives Policy
City of Newcastle has prepared Community Infrastructure Incentives Policy to establish a transparent and equitable means of facilitating increased density in Wickham. The policy seeks to provide incentives to development to deliver the urban renewal outcomes identified in the Wickham Masterplan 2021 (July 2022) (WMP 2021), including improved connectivity and amenity of the public domain.
This policy can be found on the City of Newcastle website under Development/Strategic Land Use Planning/Strategic Planning Documents.
Background
The background to this policy is well outlined by City of Newcastle as follows.
“On 15 December 2010, part of Wickham was included within the Newcastle Potential Precinct Map under then State Environmental Planning Policy (Urban Renewal) 2010 in order to facilitate the orderly and economic development and redevelopment of sites in and around urban renewal precincts. To initiate urban renewal, the NSW State Government prepared the Newcastle Urban Renewal Strategy (NURS) which aimed to make the Newcastle city centre a vibrant and innovative regional hub and an attractive and viable destination for business, residents and visitors. The NURS identified the need for further planning and urban design guidance within the Wickham area to facilitate the transformation from a post-industrial suburb to an urban village that facilitates a mix of uses and densities.
Council adopted the Wickham Masterplan 2017 (WMP 2017) on 28 October 2017, following extensive engagement with stakeholders to identify a vision for the desired future character of Wickham, as well as outlining the strategies and actions to achieve the vision. The WMP 2017 provided strategic guidance for CN’s planning decisions and coordinated delivery of urban renewal within Wickham.
In order to ensure fairness and equity among landholdings and not unduly impose a burden on land identified for community infrastructure, the WMP 2017 advocated for an incentives approach on sites with capacity to support a variation to development standards, by enabling increased gross floor area (GFA) where development delivers identified community infrastructure.
On 27 July 2021 Council adopted the Community Infrastructure Incentives Policy that identified the approach CN would take to deliver urban renewal through development incentives mechanisms with its LEP.”
City of Newcastle (2023). Planning Proposal – Community Infrastructure Incentives in Wickham. Version 1.3 – Public exhibition, February 2023.
How it Works
This is well stated in Development Control Plan 2023 E7, Wickham, as follows.
“… In accordance with Clause 7.11 of LEP 2012 an incentive height of building and floor space ratio may be achievable on land where CN and an applicant have agreed to or entered into a planning agreement on the basis of providing identified community infrastructure.
… Community infrastructure may be provided to CN in the form of land, capital works, cash contribution, or a combination of these that will deliver the nominated community infrastructure projects identified in the Wickham Community Infrastructure Plan.
… Applicants will obtain in-principle agreement from CN to the provision of community infrastructure being offered prior to lodging a formal DA.
Explanatory note
… Community infrastructure is identified in the Wickham Community Infrastructure Plan. It includes development for the purpose of community facilities, recreation areas, recreation facilities (outdoor) or public roads.
… The ‘Incentive GFA Rate for Wickham’ is identified in the Wickham Community Infrastructure Plan and is subject to indexation.
… A planning agreement is the means by which identified community infrastructure will be delivered on a given site. This community infrastructure is provided in addition to infrastructure contributions payable under Section 7.11 and Section 7.12 of the Environmental Planning and Assessment Act 1979.”
Desired Development Density
The Wickham Master Plan identified the desired redevelopment density as shown in Map 15 below.
Wickham Master plan 2017 – Map 15 Potential Redevelopment Densities
Not all of this increased density can be realised since Subsidence Advisory NSW has recently advised that most of the land north of Throsby Street and west of Railway Street has no viable option for remediation. Prior to this advice it was thought a developer could locally grout the underground coal mine workings. However, recent investigations by Subsidence Advisory NSW on Newcastle City Centre has revealed that bulk grouting is the only likely remediation strategy and this is economically unviable for a single developer to pursue. See Planning/Mine Subsidence for details.
Increased Height of Building
As of May 2025, only two sites have taken advantage of the increased heights available and these have just started construction. In Area A, the site behind the Lass O’Gowrie Hotel has increased its height from 24 m to 45 m. In Area E, the Bowline development beside the Newcastle Interchange has increased its height from 45 m to 57 m (of max 60 m). A third site, located in Area B, currently has a development application under assessment to increase its height from 14 m to 35 m over much of the site. A fourth site, 41-47 Throsby Street in Areas C and D, is yet to submit a development application, but has an approved planning agreement to increase the height from 10 m to 14 m in Area C and 24 m in area D.
NSW Planning Portal Spatial Viewer (May 2025) – Height of Buildings Map with Additional Controls
Increased Floor Space Ratio
As of May 2025, only one site has taken advantage of the increased floor space ratios and this has started construction. In Area E, the Bowline development beside the Newcastle Interchange has increased its floor space ratio from 6:1 to 6.9:1 (of max 7:1) with a corresponding height increase from 45 m to 57 m (of max 60 m). Note that the site behind the Lass O’Gowrie Hotel has increased no permitted increase in floor space ratio; while the height on this site has increased from 24 m to 45 m, the floor space ratio is 3.99:1, just under the permitted 4:1. A second site, located in Area B, currently has a development application under assessment to increase its floor space ratio from 14 m to 35 m over much of the site. A fourth site, 41-47 Throsby Street in Areas C and D, is yet to submit a development application, but has an approved planning agreement to increase the floor space ratio from 10 m to 14 m in Area C and 24 m in area D.
NSW Planning Portal Spatial Viewer (May 2025) – Floor Space Ratio Map with Additional Controls
Community Projects
With the first two developments to take advantage of the incentives starting ground works, there will soon be almost $3M in the Wickham community benefit fund. This money cannot be spent by City of Newcastle outside of Wickham. In March 2025 GLOW engaged with City of Newcastle to start the process to identify community infrastructure projects to be funded. Note that these projects are “nice-to-have’ projects that are over and above what City of Newcastle is obliged to provide in Wickham. For example, stormwater upgrades at end-of-life are funded from years of rate payments by Wickham residents, and public domain changes to cater for the increased density in Wickham are funded from developer contributions (which are around $6 or $7M over the last several years).