Uralla Shire Council has put further pressure on the state government to withdraw the Infrastructure Contributions Bill.

The bill, which was introduced by then-treasurer Dominic Perrottet, has been at the centre of controversy and the subject of a number of submissions from local government.

One of the major issues councils have with it is that ratepayers could end up footing the bill for aspects of developments usually covered by developer levies.

Local Government NSW president Linda Scott said if the bill were to pass, it could have dire consequences that would see the state take a backwards step.

"The state government's dangerous legislation threatens to take us back to the bad old days of suburbs with no drainage, and communities with no parks, by allowing developers off the hook from providing essential infrastructure and services to ensure liveable communities for our future," she said.

"As well as funding vital infrastructure like roads, roundabouts, drainage and footpaths, those funds help pay the bill for the new parks, pools, playgrounds, childcare centres, libraries, and more, to meet the expectations of our communities today.

"Councils will be forced to cancel infrastructure needed to support increased demands brought about by development or to raise rates, impacting those who can least afford it."

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The Department of Planning, Industry and Environment argued the bill was formed to "fix the uncertainty of infrastructure contributions, which will unlock new housing supply, deliver vital public infrastructure and boost investment in NSW".

But, as part of the motion moved at the meeting last week, USC will call for further consultation with local councils and changes to a tribunal.

"[Council] calls on the NSW Government to undertake further consultation with the local government sector on any proposed reforms to the infrastructure contributions system," a report to the councillors said.

"[And] calls on the NSW Government to de-couple the Independent Pricing and Regulatory Tribunal led review of the rate peg to include population growth from the infrastructure contributions reforms."

Part of the reason councils have been so vocal on the issue is because Local Government NSW has taken a strong stance against it.

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