Yesterday, the Malinauskas Government released its Housing Roadmap, with a raft of policy announcements to address housing supply and the related water and sewerage infrastructure constraints.
The Housing Roadmap will see $1.5 billion directed towards water investment for service delivery.
“We must make the investments now that set our state up for the future.
The roadmap also includes accelerated planning approvals and Code Amendments, legislative reform and establishing the Office of the Coordinator-General to facilitate critical infrastructure plans.
Property Council’s South Australian Executive Director, Bruce Djite, said the Housing Roadmap is the culmination of Property Council’s advocacy on water and sewerage infrastructure issues since 2023, but expediting delivery of the roadmap will be the true test when it comes to easing the housing crisis.
“We welcome the government’s announcement today, but now, the rubber must truly hit the road and we need to see this plan delivered,” Mr. Djite said.
“$1.5bn for water investment over the next four years is a courageous policy decision, but it is important the government outlines exactly how, where and when this money is going to be spent.
“The only way out of this housing crisis is supply supply supply. Demand-side incentives announced in the budget were positive, but fast-tracked approvals, as well as certainty and simplicity around augmentation fee requirements are the kind of measures that will stimulate and incentivise industry activity and new builds.
“After Adelaide last week became the ninth least affordable city in the world, the success of this announcement will be measured by more stable and sustainable median house price and rental growth. We must mitigate the explosion in house prices and rents that threaten to lock out an entire generation from owning their own property. Critically, the rate of housing starts will be an important gauge of this policy’s success.
“Depoliticising development is crucial in easing the housing crisis, and today’s plan should be the start of a more mature ongoing conversation around development that recognises industry’s role in solving housing.”
The roadmap includes a shared cost model to fund water augmentation charges whereby developers, together with SA Water customers and the state government will share the cost of water infrastructure development from 1 July 2024. This entails:
- New residential greenfield allotments making a fixed contribution of $10,000 per dwelling – $5,000 towards water infrastructure and $5,000 for wastewater infrastructure.
- New residential infill developments in the greater Adelaide region will also make a contribution based on the number of new households connecting to SA Water’s network. A $2,500 charge (comprising $1,250 for water and $1,250 for wastewater) will be applied for the 2024-25 financial year, before gradually increasing up to $10,000 from 1 July 2027.
- The augmentation charge only applies to each new connection and will not apply where a new connection replaces an existing connection. Where a new property does not connect to SA Water’s wastewater infrastructure or water infrastructure that payment will not be required.
- Apartment developments are exempt for the new augmentation charges. Build-to-rent, Community and not-for-profit housing will also be exempt from the new augmentation charges in recognition of the role those developments play in driving affordable housing outcomes.
- SA Water customers will bear increases of 3.5 per cent above CPI estimated to be approximately $20 per quarter.