28 June 2012
The extension of the State Infrastructure Contribution deduction of 50%, from the proposed end date of June 30 2012, is welcomed by the Urban Taskforce.
The extension of the deduction is welcome news to the industry, says CEO of the Urban Taskforce Chris Johnson. But we are concerned that there is no timeline about the final determination of contribution levels.
Our industry operates on long timeframes and we need some certainty about the amount of contributions to be paid.
While we are clearly supportive of the assistance the continuation of the deduction of half the contribution gives to the industry we are however concerned that it was left to a few days before the expiry date to announce its continuation.
It seems that the deduction will remain in place until the new planning act is in force and that options for the operation of contributions will be outlined in the much awaited Green Paper.
The next step will be a proper analysis of how to fund infrastructure in ways that dont excessively burden individual projects as that will only increase the cost of each housing unit.
The Urban Taskforce has previously proposed the use of broader based levies to spread the burden of funding infrastructure across all users.
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