This investment will be money well spent
HIA backs government initiative to help fund infrastructure projects, which should speed up the house building process.
THE Federal Budget is likely to see a $2 billion investment in infrastructure which will support the construction of over close to 65,000 new homes.
It has been reported that the Federal Government will put aside the $2 billion over four years to fund the critical infrastructure.
The Housing Industry Association says the current cost of enabling infrastructure is one of the key challenges for the residential construction industry.
“A substantial number of housing projects across Australia are near ready for construction, but stalled due to a lack of funding for enabling (‘last mile’) infrastructure,” HIA Managing Director Jocelyn Martin said.
“In many growth areas, state and local governments face increasing difficulty financing the trunk infrastructure required to unlock new housing supply.
“The cost of infrastructure provision, and the mechanisms used to recover those costs, have a direct influence on land prices, development feasibility and housing affordability.
“Poorly sequenced or excessively front-loaded charges raise project costs and delay delivery, whereas timely and efficiently financed infrastructure can expand supply and moderate price pressures.”
Martin said it is particularly pleasing to see that $500 million is being reserved for regional Australia.
“It can be a challenge to fund infrastructure in regional growth areas, where the population does not yet support more investment in services, but the population can’t grow without it,” she said.
“This helps break that ‘chicken and egg’ cycle.
“Timely provision of enabling infrastructure is critical to making projects shovel ready.
“It is not traditionally an Australian government responsibility, so this is an important commitment that will help accelerate housing delivery.”
