Infrastructure Victoria’s recipe for success

The Property Council is urging the State Government to adopt the key recommendations of Infrastructure Victoria’s 30 Year Strategy to lock in Victoria’s long term success.

Property Council Victorian Executive Director Sally Capp said this is a once in a generation opportunity to objectively plan Victoria’s long term infrastructure needs.

“The Property Council’s submission to Infrastructure Victoria supported the three key recommendations of increasing population density, transport network pricing and delivering housing for Victoria’s most vulnerable,” said Ms Capp.

“Over the past decade, the Property Council led the charge for the establishment of Infrastructure Victoria. We support their evidence-based, independent approach to defining our future infrastructure needs,” said Ms Capp.

“Several of Infrastructure Victoria’s recommendations will not be easy or popular to implement. We will support any government which makes smart, but tough decisions that resonate beyond the electoral cycle.

“Transport congestion costs Victorians $4.6 billion per year and its impact is worsening. The side effects of congestion, pollution, and lost productivity are all undermining Victoria’s liveability. It is critical that the State Government take decisive action in this area to maintain our State’s long term prosperity.

“The Property Council urges the State Government to seek innovative funding and financing solutions for infrastructure delivery. We do not support the introduction of ‘beneficiary charges’ which will harm housing affordability and are infrastructure taxes by another name.

“Too often we see governments across the country turn to property taxes and developer charges to fund intergenerational infrastructure. Our industry pays 55 per cent of taxes collected in Victoria despite being 11 per cent of the economy. We are prepared to pay our fair share, but not five times our fair share.

“In the current climate of historically low interest rates, we encourage the Government to partner with the private sector, superannuation funds and the broader investment industry to fund and finance Infrastructure Victoria’s recommendations.

“We encourage the State Government to adopt Tax Increment Financing (TIF), asset recycling, air rights leasing and other proven mechanisms. The time is right for Victoria to lead on these important reforms.”

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Media contact: Sally Capp | M 0439 983 963 | E scapp@propertycouncil.com.au