The LNP Federal Government has released its policy on new developments for comment, to the industry. As a result, the cost of network development will be shared amongst Home Owners, Developers and NBN Co as well as fostering competition amongst alternate network providers for the provision of infrastructure. The new policy is expected to apply on and after  1^st March 2015 and key impacts are:

Developers

• Continue to be responsible for the cost of fibre ready pit and pipe
• Will be required to pay a Deployment Charge $600/lot for SDU’s and $400/lot for MDU’s
• Will be required to pay a Backhaul Charge of up to 50% of the first $1000/lot then 100% of costs > $1000/lot. The backhaul Charge will not be applicable where sufficient backhaul is currently in existence
• These payments will only be applicable to new applications for fibre and will not be applied retrospectively
• Developers will be able to choose which technology is deployed. Not all new developments will necessarily be reticulated with Fibre to the Premises (FTTP). NBN Co may choose to deploy Fibre to the Node (FTTN) or Hybrid Fibre Coax (HFC) where appropriate eg in-fill areas
• Are required to give Infrastructure Providers of Last Resort ( IPOLR’s) a maximum of 6 months advance notice prior to the first home “ready for service” date. A minimum of 4 months’ notice is required. Developers would be liable to pay compensation for the provision of alternative service, should they be responsible for delays beyond “ready for service” dates
• To have the opportunity to build fibre infrastructure eg on a Build and Transfer model

New Home Owners

• Will be required to pay a one off network connection charge of $300. Retail Service Providers to collect

NBN Co

• Remains the IPOLR for voice and broadband services in > 100 lot developments but can choose to undertake < 100 lot developments where economical to do so

Telstra

• Remains IPOLR for voice services in < 100 lot developments
• Remains the IPOLR for voice services in areas outside the fibre footprint – ie in NBN Co fixed wireless and satellite areas
• Will retain its Universal Service Obligation(USO) but will have increased flexibility to use alternate technologies to deliver service

 Other Network Providers

• Are not obliged to levy the charges for connection, Deployment and Backhaul

Design Houses

• The role of design guidelines G645:2011 and NBN-TE-CTO-194 will be reviewed with a view to consolidation, the preference being for NBN-TE-CTO-194 to be the default guideline

 WA State Planning Department

• The Federal government are encouraging the WAPC to make provision of telecommunications as a condition of subdivision clearance

The 13.9% Gifted Asset Tax has been confirmed to commence for specified projects from Monday 5^th January 2015.

The Gifted Asset Tax was first introduced in April 2014 however was put on hold for further review and consultation with key industry bodies. (Click Here to Read Previous Post)

The Recovery Tax Cost will only apply to specific projects. Answers to FAQs and project exclusion list can be found at the following link:

http://www.westernpower.com.au/corporate-information-recovering-tax-cost-on-capital-contributions.html

(The latest Western Power Land Development Industry Updates can be found in the Bulletins Section – Click Here)

In response to safety concerns, Western Power proposes a change to the present working end termination arrangement.

(Click Here to Read Post) – 30/06/2014

Western Power’s Design and Access Offer Application could take up to 12 weeks prior to commencement of a desktop review and estimate quotation. With the following indicative end to end cycle time guidelines from Western Power, these timeframes should be noted and applications submitted in the early stages of the project to avoid/minimise delays and cost implications.

The table below provides indicative E2E cycle time guidelines for each customer access project category:

Please note the following about these indicative guidelines:

• Based on the full timeframe from application to energisation.
• Based on an 80% confidence level.
• Each project category encompasses a broad range of work.

Western Power has recently provided confirmation to the Urban Development Institute of Australia (UDIA) that a 13.9% price uplift will be introduced on the 1^st May 2014. The price increase is utilised as a method to recover tax payments for new assets that are gifted to Western Power and therefore will affect all new developments within Western Power’s network. This will impact developer’s cost, construction timeframes and will have possible negative flow on effects to homebuyers. Subsequently, the implementation has been put on hold until further notice.

Update: Western Power Posts Notice on Changes for Recovery of Tax (Click Here to Read Post) – 02/04/2014

Update: Western Power Posts Notice that implementation is On Hold (Click Here to Read Post) – 17/04/2014

WP’s FAQ: http://www.westernpower.com.au/aboutus/Recovering_tax_on_capital_contributions_.html

Horizon Power brought in a similar tax last year, set at 27.6%. It already applies to all new projects. Horizon Power’s Developer Pricing Information:

http://www.horizonpower.com.au/documents/Developer_Pricing_Information3695165.PDF

Congrats to the guys that completed the 10km Bridges Run!

Telstra have officially released a process under which they will accept ownership of Third Party designed/constructed pit and pipe – details below. Therefore, if you want, we can now design for green titled projects with < 100 lots growth over 3 years and won’t have the downside of the assets being orphaned. The advantage being that design/construction cost and timing would be under your control. Telstra require that pit and pipe be fibre ready, built to NBN Co Guidelines and the Communications Alliance Guidelines G645:2011. To formalise the process an acquisition contract will need to be signed for each development, authorising asset transfer. Telstra’s design/construct partner, ISGM, will QA inspect after PC but prior to acquisition and asset transfer. Telstra will also acquire networks retrospectively.

See the full Telstra Statement here

Western Power has published it’s new DLVCH scheme policy. The policy came in to effect in October 2012. This affects the way DQA projects are costed.

http://www.westernpower.com.au/electricalcontractors/dlvchs.html