UDIA National Conference

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