Budget infrastructure boost needs a plan for cities

The $75-billion infrastructure commitment trumpeted by the Treasurer in yesterday’s budget is good news, but needs a comprehensive plan for cities behind it, says the Property Council’s chief executive, Ken Morrison.

In his budget speech on Tuesday night, Treasurer Scott Morrison re-committed to the Turnbull Government’s “$75 billion 10-year rolling infrastructure plan”, which includes $24.5 billion in major projects.

These infrastructure commitments include $700 million towards Perth’s Metronet rail project, a $1 billion spending spree in Victoria on a host of projects including a rail link to Melbourne Airport, the North South Rail Link in western Sydney, duplication of the Port Botany freight line and $844 million for upgrades along Queensland’s Bruce Highway.

Ken Morrison says the budget “overwhelmingly” funds the right projects – but the money must be “leveraged” into “comprehensive plans to grow our cities and regions”.

“The government’s 10-year infrastructure pipeline will reduce congestion, boost productivity and improve connectivity in our cities and regions. For the most part, these are projects which Infrastructure Australia says the country needs,” Morrison says.

But with Australian cities rapidly growing, Morrison says there is room to be “much more ambitious in our approach to planning for the future growth of great Australian cities”.

The Property Council, a strong advocate of City Deals for Australia’s largest capital cities, is disappointed to see that no further investment is outlined in the budget.

Similarly, the problem of housing affordability, a major focus of last year’s budget, won’t be addressed in one budget, Morrison explains.

“We need the full suite of policies to ensure new supply can keep pace with our growing population.”

The budget is “silent” on support for the build to rent sector, which Morrison says needs the right policy settings to get off the ground.

“Investors are ready provide Australians who rent with a wider range of housing options.”

The Property Council has welcomed increased home care funding in the budget, but Morrison says this funding is only part of the solution.

“While we applaud incentives that encourage people to stay at home for longer, this should be complemented by policy that makes rightsizing easier,” Morrison concludes.