Urban Taskforce Australia supports the Tribunal’s decision to maintain a cost of debt based approach to calculate developer contributions. Urban Taskforce is pleased to see that the Tribunal’s own analysis of alternative methodologies by HoustonKemp did not recommend any change.
However, given the current financial imposts and issues facing the housing construction industry, Urban Taskforce does not support a lifting in the nominal rate to 4.8% from the previous 4.0%.
We believe that considering the cost of debt for a council’s infrastructure calculation is more appropriate than attempting to redefine any council revenue stream as “equity”.
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