Published Wednesday, 25 July, 2007 at 12:02 PM
JOINT STATEMENT
Premier and Minister for Trade
The Honourable Peter Beattie
Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh
NEW MOVE TO TACKLE INFRASTRUCTURE CHARGES
The Queensland Competition Authority will monitor spiralling infrastructure charges as part of the State Government’s Housing Affordability Strategy.
The move, in response to consultation with the housing industry, is an Australian-first that will keep infrastructure charges in check and help ensure the price of new housing is achievable for most Queenslanders.
New rules covering infrastructure charges that councils levy on developers will help ensure transparency and set a template to be followed across the state.
Infrastructure charges vary wildly from council to council and from year to year. The industry has been crying out for certainty.
Charges are passed on by developers to homebuyers, so it is essential to ensure the costs — which can account for one-fifth of the price of a house-and-land package — are fair.
There is also the concern that money is being spent on a variety of things other than infrastructure, which becomes another unfair impost on homebuyers.
Under this strategy, developers will have the long-awaited opportunity for disputes over charging to be resolved by the Building and Development Tribunal. This will help ensure the true cost of providing infrastructure can be independently evaluated.
Developers have told the Government that providing certainty will allow them to pass on savings to homebuyers. We have delivered and now it is up to them.
Other initiatives in the strategy include allowing third-party financing of trunk infrastructure through financial institutions or Infrastructure Bonds.
Councils will continue to determine the proportion of infrastructure costs recovered, infrastructure networks charged for, and any new charges.
Developer charges will remain the major mechanism for funding infrastructure in new development areas. What the strategy seeks to do is ensure these charges are transparent and fair.
By next June, all local governments will be required to develop Priority Infrastructure Plans, which set out councils’ plans for their key infrastructure networks. Attached to these PIPs are Infrastructure Charges Schedules, which divide up the infrastructure costs between the beneficiaries.
The Queensland Housing Affordability Strategy, which also addresses the land and housing supply pipeline, is part of the State Government’s ‘Keeping the Australian Dream Alive’ election commitment.
25 July, 2007
Media inquiries: 3224 4500
The move, in response to consultation with the housing industry, is an Australian-first that will keep infrastructure charges in check and help ensure the price of new housing is achievable for most Queenslanders.
New rules covering infrastructure charges that councils levy on developers will help ensure transparency and set a template to be followed across the state.
Infrastructure charges vary wildly from council to council and from year to year. The industry has been crying out for certainty.
Charges are passed on by developers to homebuyers, so it is essential to ensure the costs — which can account for one-fifth of the price of a house-and-land package — are fair.
There is also the concern that money is being spent on a variety of things other than infrastructure, which becomes another unfair impost on homebuyers.
Under this strategy, developers will have the long-awaited opportunity for disputes over charging to be resolved by the Building and Development Tribunal. This will help ensure the true cost of providing infrastructure can be independently evaluated.
Developers have told the Government that providing certainty will allow them to pass on savings to homebuyers. We have delivered and now it is up to them.
Other initiatives in the strategy include allowing third-party financing of trunk infrastructure through financial institutions or Infrastructure Bonds.
Councils will continue to determine the proportion of infrastructure costs recovered, infrastructure networks charged for, and any new charges.
Developer charges will remain the major mechanism for funding infrastructure in new development areas. What the strategy seeks to do is ensure these charges are transparent and fair.
By next June, all local governments will be required to develop Priority Infrastructure Plans, which set out councils’ plans for their key infrastructure networks. Attached to these PIPs are Infrastructure Charges Schedules, which divide up the infrastructure costs between the beneficiaries.
The Queensland Housing Affordability Strategy, which also addresses the land and housing supply pipeline, is part of the State Government’s ‘Keeping the Australian Dream Alive’ election commitment.
25 July, 2007
Media inquiries: 3224 4500