The Australian Local Government Association (ALGA) has welcomed today’s Coalition’s pledge to invest $5 billion in enabling infrastructure through a new Housing Infrastructure Program to unlock up to 500,000 new homes across Australia.
ALGA President, Matt Burnett said the association had been calling for the extra funding, which he said was crucial to unlock new housing developments.
“Our latest research shows building the enabling – or trunk – infrastructure to cover the gap between current housing constructions and the nation’s ambitious housing target will cost at least $5.7 billion,” President Burnett said.
“This is before we invest in the libraries, pools, recreation centres and bike paths which are vital for creating liveable communities.”
AGLA’s research also shows 40% of Australian councils have cut back on new infrastructure developments due to inadequate trunk infrastructure funding.
“We are delighted the Coalition has responded to our call for increased investment in enabling infrastructure, that will make a significant contribution towards addressing Australia’s housing crisis,” said President Burnett.
He said it was important for the new infrastructure funding to be made available to all of Australia’s 537 councils.
“We understand the proposed new program is focussed on greenfield developments, but all councils are facing challenges building and upgrading local infrastructure to support new housing.”
In a statement, the Coalition said: “We know there are hundreds of greenfield sites across the country ready for development, but progress has been stalled due to a lack of funding for essential enabling infrastructure. Our approach is focussed on investing in enabling infrastructure to unlock the supply of shovel-ready new housing developments.
“The cheapest form of housing for first home buyers is detached housing with backyards and our Housing Infrastructure Programme will be a catalyst for exactly this – new greenfield housing developments.
“This funding will be offered on a ‘use it or lose it’ basis. This means if there is no progress on successful projects within 12 months of contracting, then the funding will be terminated.”
Business Council of Australia Chief Executive, Bran Black, has also applauded the plan.
“We urgently need policies that generate more housing supply and we welcome the Coalition’s commitment to significantly increase housing infrastructure funding,” he said in a statement.
“In our landmark housing report, ‘It’s time to say yes to housing’, which will be released on Monday, we specifically call for increased investment to support both local infrastructure programs necessary to unlock housing in specific areas, and large scale development projects that enable more housing across entire regions.
“Housing policies must be squarely focused on boosting supply and building more homes, which is why we need policies that address planning, approvals and zoning, as well as increased infrastructure funding,” said Mr Black.