The Productivity Commission’s Housing Supply Regulation Interim Report, released this week, has backed the central case put by Peri Urban Councils Victoria (PUCV) that housing targets must include essential infrastructure that is funded and sequenced before homes can be built.
The PUCV says the finding has direct implications for Bass Coast, Baw Baw, Golden Plains, Moorabool and Surf Coast, where councils have been assigned a combined target of 85,450 additional homes by 2051.
PUCV’s June 2026 submission to the Commission’s inquiry argued that housing reform must focus on development-ready land, supported by roads, drainage, water, sewer, electricity, transport, approvals and funding arrangements.
Acting Chair of Peri Urban Councils Victoria and Golden Plains Shire Mayor, Owen Sharkey (pictured) said the national report backed the core position advanced by PUCV and its member councils.
“The Productivity Commission has backed our central case: a line on a planning map is not a home,” Cr Sharkey said.
“Infrastructure is what turns land into housing. Until roads, sewer, drainage, power and transport are funded and sequenced, housing targets remain numbers on a page,” he said.
The Commission has highlighted that infrastructure planning is often the main constraint on housing delivery in greenfield areas and recommends that housing, rezoning and infrastructure upgrades be sequenced together.
It also identifies a potential Commonwealth role in providing low-or no-interest loans, managing funding shortfalls and underwriting infrastructure sequencing risks.
PUCV has identified around 332 growth-area infrastructure projects worth more than $1.25 billion that would support about 72,000 homes across its five member councils.
“Peri urban councils have targets for 85,450 homes, but the infrastructure bill arrives first,” Cr Sharkey said.
“Developer contributions and new rates arrive later. Without upfront finance, the land may be zoned, but it is not ready to deliver homes.”
PUCV says the findings strengthen the case for its proposed $90 million Development Contributions Plan Loan Fund and $230 million Peri Urban Capital Infrastructure Fund.
PUCV is calling for the Commission’s final report to:
- recommend Commonwealth and State forward-finance and capital funding for housing- enabling infrastructure;
- recognise development-ready land, local government financial capacity and the distinct peri urban growth model; and
- support practical funding mechanisms that turn planned growth into real homes and liveable communities.
