The defeat of the Growth Areas Infrastructure Contribution Bill in parliament yesterday will be disastrous for land supply and threaten Victoria’s competitive advantage to provide affordable housing.
Property Council executive director, Jennifer Cunich, said the defeat of the Bill sends a clear message to both the government and opposition.
"It is unfortunate that neither the government nor opposition were willing to work together to reach an outcome,” said Ms Cunich.
With both major parties agreeing there is a need for an infrastructure charge the Property Council is urging both parties to negotiate an agreement and to move forward and expand the Urban Growth Boundary (UGB).
“We are disappointed that neither party could come to an agreement and move amendments that would secure funding, secure land supply and have the support of the development industry,
"There is no question that land within the new UGB will now become more expensive as the future supply is diminished," said Ms Cunich.
The Property Council has been advocating for any development charge to be levied at the gazettal of the Precinct Structure Plan (PSP) and charged when titles are registered. The industry’s position will minimise the impact of the GAIC on land cost and therefore housing for the people of Victoria.
“Our position on this issue still remains unchanged. We were willing to negotiate with the government on the draft Bill to reach an agreement that the industry could support. Now this Bill has been defeated we are back to the drawing board,” said Ms Cunich.
The defeat of this legislation will directly impact the home buyer through lack of supply and increasing prices on current supply stocks.
“It is time the government and opposition stopped playing politics over the future of Victoria’s land supply and started working towards a model that will be supported by land holders, developers and the community that delivers timely infrastructure to our growth areas.”
For further comments contact:
Jennifer Cunich, Executive Director (03) 9650 8300
Rachel Saunders, Public Affairs Manager (03) 9664 4230 or 0408 861 408