No Surprise in
$10 Billion Infrastructure Tag for Growth Areas
First home buyers
carrying the burden of infrastructure cost
The
Urban Development Institute of Australia (Victoria) today said it was not surprised
by the estimated $10 billion price tag to provide new education, health and transport
needs for growth area councils, adding the areas have been in 'catch up mode'
for at least ten years.
Tony De Domenico, Executive Director,
UDIA (VIC) said, "In
Australia in the past decade the tax system has placed more responsibility on
first home buyers on the fringe to fund infrastructure upfront impacting on affordability".
"In 2010 first home buyers and people
building a new home were carrying the major burden of infrastructure costs. Up
front figures by Charter Keck Cramer show in 2011, taxes and charges across the
three levels of Government on an average block of land in Victoria costing $199,000
was $46,200".
"The fastest
growing residential areas of Melbourne and regional Victoria need investment
in infrastructure now to boost employment and also provide strong economic
communities to cope with the State's increasing population".
"Recognising the Victorian cut back
in GST revenue reducing the ability to fund infrastructure, the UDIA (VIC) has
put forward a ten point plan to the Victorian Government to stimulate the Victorian
property sector".
"This included
the introduction of ten year Government Guaranteed infrastructure bonds to provide
a safe and productive investment choice for investors with a positive outcome
for the community."
"In simple
terms a combination of prudent borrowing combined with the choice of infrastructure
projects to create productivity and attract private investment at a time when
low interest rates can be locked in for ten years, is a major opportunity for
positive political action".
Mr De Domenico said it is not only the
Governments' job to stimulate the economy by funding, creating a more productive
system to bring land to market and help make housing affordable, but it also required
the private sector to develop new innovative and affordable housing choices.
"By moving now Governments could
cut hundreds of millions of dollars off the cost of major infrastructure projects,
such as a second crossing to the west of Melbourne or the creation of job employment
centres closer to building in the outer suburbs."
"The bottom line is that the property
sector provides major tax returns to government and importantly has a major flow
on impact on the provision of jobs, materials and services that flow into
local economies," Mr De Domenico said.
Media Enquiries:
Ron Smith, Corporate
Media Communications, UDIA (VIC) - Mobile: 0417 329 201
