The Government is investigating an overhaul of the way councils collect money for their annual $3.6 billion new infrastructure spend.
Scrapping development contributions, the levies collected from developers on properties they are building on, is one option.
Local Government Minister Chris Tremain said the system was "complex, difficult to understand and applied inconsistently".
So the Department of Internal Affairs issued a discussion paper calling for submissions by March 15 and floating options including abolishing contributions, reinstating Environment Court appeals, tightening the range of infrastructure funded by the payments and allowing discounts for a type and location of development creates less demand for services.
The Productivity Commission found charges of up to $20,000/section for housing and the contributions are seen as one factor affecting housing affordability and shortage.