Light rail a plus for investment and can serve as pilot for tax increment financing

The State’s decision to construct a new light rail network centred on Parramatta is a boost for jobs, housing and mobility, and could serve as a template for a new model of funding infrastructure.

The Property Council said the light rail network can consolidate growth across the proposed corridors and unlock opportunities for urban renewal.

It is now urging the State Government to use tax increment financing – a common method of funding infrastructure applied overseas – to help meet costs for the leg circling through Olympic Park.

“Light rail can help link local markets, boost mobility and liveability and give people greater transport options as the region grows,” NSW Executive Director Glenn Byres said.

“It can also act as a catalyst for urban renewal in the corridor from Parramatta to Olympic Park, and help resolve some of the transport constraints at Olympic Park.

“We now need to make careful choices about funding solutions, and tax increment financing is the best choice that adopts a method commonly used in countries around the world.

“In short, tax increment financing involves governments paying for infrastructure using bonds then repaying them from existing property taxes as development and growth is unlocked.

“It avoids the trap of creating new property taxes, provides a direct link between better infrastructure and smart land use, and is a proven model throughout the US and UK.

“The Property Council has pressed governments for close to a decade to find a pilot site – and this serves as an ideal opportunity to add to the suite of solutions for funding infrastructure.”

Media contact:  Glenn Byres  |  M  0419 695 435   |   E  [email protected]