A cap on what councils charge for new sections is one option considered in a government report on housing affordability.
The discussion paper includes options for reform of the Local Government Act to cap charges, as well as other measures to reduce council costs associated with new housing developments.
The Development Contributions Review Discussion builds on the recommendations of the Productivity Commission inquiry into Housing Affordability and the Urban Design Technical Advisory Group that raised concerns about these charges.
Housing Minister Nick Smith says section prices have more than doubled in the past decade and a major factor is development fees charged by councils.
He says the cost has surged from an average of $3000 per section 10 years ago to $14,000 today.
The Government is looking for feedback on the Development Contributions Review Discussion Paper, from builders, councils, developers and the wider community.