Urban Development Institute of Australia (UDIA) has welcomed the announcement by the Coalition of a $5 billion-dollar fund for enabling infrastructure to unlock housing for all Australians.
UDIA’s own data shows that the immediate investment needed for infrastructure nationwide runs at some $16 billion dollars and is critical to unlocking large tracks of housing across Australia.
Based on recent UDIA analysis, we estimate there is an average shortfall for enabling infrastructure of around $10,000 per dwelling across the Nation after taking into account the contributions and allocations already earmarked for infrastructure. On this basis we could expect to see as many as 100,000 houses unlocked for every $1bn in the fund. That would deliver a material improvement for housing supply.
UDIA is pleased the need for more up-front infrastructure investment is receiving the attention of our elected leaders and urges all parties to adopt a similar commitment.
“This is smart policy that goes right to the heart of addressing the housing crisis and ensuring there are poles, pipes, wires and roads so houses can actually be built,” said Col Dutton, UDIA National President.
In addition, we would strongly encourage that a portion of any money provisioned for enabling infrastructure be allocated to facilitate funding of Works In Kind (WIK) agreements from developers. These are infrastructure works delivered by developers where the value of that work offsets the developers’ existing obligations to pay developer charges to the state, when their development is completed.
“Finding mechanisms that allow developers to do more of the heavy lifting on infrastructure delivery is a common-sense policy. It will allow us to build more homes faster and maximise the skilled workforces already being deployed by onsite developers,” said Col Dutton.
UDIA National also welcomes freezing the National Construction Code, as a clever strategy to coordinate further changes with industry and help it catch up with the current changes.
“We also need developers and builders to be given a seat at the table in developing the funding priorities with state and local Government, so we maximise the infrastructure delivered for every dollar allocated,” Col Dutton said.
Media enquiries: Deanna Lane, Director Media & Communications UDIA National – media@udia.com.au 0416 295 898