INFRASTRUCTURE CHARGES TO BE CAPPED

Written on the 12 April 2011

INFRASTRUCTURE CHARGES TO BE CAPPED

UPDATED: HIGH build costs could be kerbed under reforms announced today by the Queensland Government to the state’s development infrastructure charges.

Taking a break from today’s Building Revival Forum, Urban Development Institute of Australia (UDIA) Queensland president Warren Harris told Gold Coast Business News the proposed changes would bring ‘certainty and confidence’ to the construction sector.

However he highlights Federal Government intervention is the ‘missing element’.

Under the proposed move, the maximum council charges for trunk infrastructure including water, sewerage, storm water and roads would be substantially lowered from July 1.

The current system means building a three-bedroom residential dwelling could incur up to $50,000 in infrastructure charges, but this could soon be capped to $28,000.

“We are realistic in understanding the councils have footed a large bill in delivering infrastructure to new housing constructions and should be able to recover some of those costs from the home owner,” says Harris.

“This morning’s announcement brings a measured control on how much they can charge for housing projects and this will create certainty and confidence, and create jobs in the building industry.

“But the missing element is Federal Government funding. This isn’t about councils and developers, it’s about councils recuperating infrastructure costs and the State and Federal Government’s should assist when necessary.

“Councils have agreed with the State Government proposals this morning, but where is the Federal Government?”

In announcing the capped charges this morning, Deputy Premier Paul Lucas says the state is not introducing a blanket charge, but rather is encouraging local councils to charge less than the new maximum.

“A central element of the reforms is giving local governments flexibility to choose whether they adopt the maximum charges or to charge lesser amounts,” says Lucas.

“This will give them the ability to choose lower infrastructure charges as a way of stimulating construction and competing for development.

“These reforms will provide greater certainty in the way councils calculate infrastructure charges, giving developers more confidence so we can continue to see development in Queensland which brings jobs and housing affordability.”

Housing industry body Master Builders is also participating in the Building Revival Forum and director of housing policy Paul Bidwell, says the priority is to agree on measures to significantly boost building activity.

“The recent Building Approvals and Housing Finance figures from the Australian Bureau of Statistics confirm the grim state of the industry,” says Bidwell.

“Master Builders Surveys of Industry Conditions indicate the top five constraints facing Queensland’s building and construction industry over the last 12 months are availability and cost of finance, levels of demand, planning approval processes, interest rates and local government infrastructure charges.

“The latest decision by the Reserve Bank of Australia to keep interest rates on hold will go some way to improving consumer confidence, however more specific strategies are required to boost the industry.

“One of the first steps we need to take is to reduce the cost of new house and land packages. This means smaller homes and cheaper land. A sensible decision must also be made on the capping of infrastructure charges.”

The State Government has also agreed to extend the current June 30, 2011 deadline for the adoption of Priority Infrastructure Plans (PIP) to December 31, 2011.


Latest News

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter