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The Housing Industry Association (HIA) has launched a plan that would see 40,000 affordable homes built over the next four years.
According to HIA, the plan calls on the Federal Government to set up a $3bn Residential Infrastructure Fund. This fund would assist state and local governments meet the cost of building and upgrading essential community infrastructure in regional and urban centres.
In return for Commonwealth payments for residential infrastructure, states and local government would have to cut infrastructure taxes placed on new home buyers, remove roadblocks on land release and cut planning approval times.
To cover growing liabilities, local and state governments are resorting to development charges and taxes on new homes to meet funding shortfalls.
Vacant land zoned for residential development is of no help if development charges put the cost of blocks of land outside the reach of first home buyers.
In Sydney, land earmarked for development is lying idle as development charges and taxes of $150,000 are charged per lot.
Under the Residential Infrastructure Fund, industry, local and state government would develop joint proposals for federal funding to contribute to the cost of delivering more affordable housing.
Individual applications would have to demonstrate a guaranteed reduction in new home taxes and charges or cost savings from cutting red tape that would be passed through into lower costs for new homes in particular areas.
The Residential Infrastructure Fund would be equally applicable to in-fill and home unit developments.
The Residential Infrastructure Fund would tie funding to performance, this is not about providing a free kick to local and state government it is about providing assistance where it is needed.
17-Jul-2007
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